Sequoia Capital China has led a US$400 million series B round in Guazi.com Inc., a Chinese online used car trading platform headed by Yang Haoyong, founder of Chinese online classified ads portal Ganji.com.
A number of investors including venture capital firm H Capital, CMB International, Jingxin Venture Capital, a fund management company established by Chinese steel maker Shougang Group, Dragoneer Investment Group, as well as existing investors Matrix Partners China and BlueRun Ventures also participated in the round, according to a company announcement.
It is unclear how much the company was valued in the latest round, but it was worth US$1 billion when it raised US$250 million in a series A financing round in September 2016.
"Currently, the used-car online transaction market is hyper competitive, which means companies must establish a high entry barrier as fast as they can," said David Zhang, founding managing partner at Matrix. "Guazi is growing at an impressive speed, as it actively invests in technology and is building up its team rapidly. We are very optimistic about Guazi's potential in the future."
A number of used-car online auction portals have secured massive funding rounds in the past year. Just earlier today, a similar platform Chezhibao raised RMB500 million (US$73 million) in a series B financing led by Chinese venture firm Youjin Capital and Jiangsu One Belt One Road Investment Fund.
Founded in 2015, Guazi is led by Yang Haoyong, founder of Ganji.com that merged with rival 58.com in 2015 to form one of the largest on-demand local services platform in China.
Guazi currently operates in over 200 cities in 30 provinces in China. The company recorded total transaction value of over RMB100 million (US$14 million) in March this year in a number of cities including Beijing, Shanghai, Chongqing, Chengdu, Shenzhen, Wuhan and Guangzhou, as the company expanded.
The company claims itself as the largest used-car online transaction platform in terms of monthly unique devices that installed its mobile app. It had 4.16 million unique devices that installed the Guazi app, much higher than any other competitors, the company claims.
Guazi previously raised a US$250 million series A round from Matrix Partners China and BlueRun Ventures last September. After that round, 58.com, as parent of Guazi, held a 34% stake in the company.
(Correction: An earlier version of this story mistakenly stated that Gauzi raised US$204.5 million in series A round. Guazi's investors have confirmed to China Money Network that Guazi raised US$250 million in series A, completed in September 2016.)