Guazi.com Inc., a Chinese online used car trading platform minority owned by 58.com Inc., has closed a new US$204.5 million round of financing from undisclosed investors, according to a company announcement.
Founded in 2014, Guazi is led by Yang Haoyong, founder of Ganji.com, which was acquired by rival 58.com last year.
Yang served as co-chairman and co-CEO after the merger, but resigned both of his positions to focus on Guazi last month.
"I believe the (funding round) demonstrates the soundness of our strategy and validates the significant growth opportunities that we see in China's rapidly transforming used car market," says Michael Jinbo Yao, chairman and CEO of 58.com.
Guazi directly links individual car sellers and buyers. It has greatly improved its market penetration, strengthened its used car network and developed relationships with auto-industry partners, according to the statement.
In November 2015, 58.com revealed plans to spin off Guazi, and Yang Haoyong reportedly invested around US$60 million into the unit.
After Yang's investment, 58.com retained roughly 46% in Guazi, Chinese media reported back then.