Chinese used-car credit site Chedai gets fresh money

10 Jan 2017

Chedai.com, the Chinese site for used-auto loans, completed a series B funding round of RMB 360 million ($52 million U.S.), it was announced at a news conference in Beijing.

Youjin Capital and Addor Capital led the round, with participation from Matrix Partners, CreditEase New Finance Industry Investment Fund, and online finance operator 360jinrong, reported the Chinese site 36Kr.com on January 5.

In April 2016, Chedai.com received RMB 217 million in a series A+ funding round from China Growth Capital, with participation from Youjin Capital and Matrix Partners. The company is already preparing for series B+ funding, revealed founder and chairman Li Haiyan.

At the news conference the launch of a used-car information-sharing platform called Dass was also announced, as well as the joint publication of the report on “Financial risk related to used cars in China” with IResearch Consulting Group.

Dass offers vehicle-information checks, inspections, regulations and notices. Users can check a vehicle’s make, model, mileage and status using the VIN (vehicle identification number), and the platform also has different levels of authorization to ensure client information is kept secure.

Chedai.com is operated by Shanghai-based Fengzhixing Automobile Financial Information Service. It began as a used-car financer and provides lines of credit from RMB 50,000 to RMB 50 million to companies in the auto industry, such as dealers, transporters and rental companies.

The loan terms on offer range from 1 month to 2 years, and the company offers a number of niche services to consumers and enterprises, such as inventory financing, purchase-order financing, in-transit inventory financing, and commercial vehicle financing.

Chedai.com has partnerships with more than 70 percent of large and medium-sized used-car dealers in China, covering 80 cities in 30 provinces. It accounts for six percent of China’s total used-car market, and issued more than RMB 12 billion in loans in total in 2016.

For more information, see 36kr.com.

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Don Gasper

Don Gasper joined the AIM team as a writer and analyst in 2005. Based in Hong Kong, he covers media-industry trends in the Greater China area. He specializes in business and legal developments concerning Chinese companies and has worked for several years as a reporter and editor for a number of daily newspapers in Hong Kong. He later moved on to work as a contributor and editor for various monthly publications and Web sites and has also lectured on journalism and communications at different universities. Don is particularly interested in the development of the Internet and how this is revolutionizing possibilities for business and social communication in China. He took part in the International Federation of Journalists mission to China in 2008 to investigate and advise on media arrangements for the Beijing Olympics. He graduated in Oriental Languages at Cambridge University and went on to study Political Science and Political Economy.