Why SoftBank Vision Fund Has Invested in this Chinese Secondhand Car Platform
Chinese startups are going all out to woo investors. The country is also experiencing a new wave of growth through few startups, which have caught the attention of investment giants like SoftBank, Tencent and Tiger Global. China’s car trading platform Chehaoduo Group, the parent company of peer-to-peer online marketplace for used vehicles Guazi, and Maodou.com, is the recent one to join the list of growing startups bagging big funding deals. The startup has announced a $1.5 billion investment round from the SoftBank Vision Fund.
Eliminating The Middlemen
In the past three years, Chehaoduo has become China's leading platform for integrated automotive retail services in the used car sector. Through an online car trading platform, the startup sells used cars. Its platform directly links individual car sellers and buyers that helps buyers remove the middlemen as well as purchase used cars easily.
Founded by Haoyong in 2014, the Beijing-headquartered group combines in-depth big data analytics and artificial intelligence technology to implement standardized evaluation and intelligent pricing mechanisms for China's highly fragmented and unregulated used car market. Furthermore, through continuous innovation across its product, service, and data platforms, the group has significantly reduced barriers to purchase a new car for consumers as well. This includes pioneering new models in down payment purchasing, establishing closed-loop integrated automotive services of used car, new car and after-market services via over 600 physical stores, and building a new data-driven retail eco-system.
Own A Better Car
Mark Yang, the chief executive officer of Chehaoduo Group, says, “The global automotive industry is experiencing unprecedented change and with this change comes great opportunities. The application of big data and artificial intelligence is the key to fundamental reform of automotive retail in China.” Chehaoduo Group is committed to promoting industrial improvement through technology reform and becoming the new engine to drive the future of automotive retail in China.
According to Yang, the startup’s vision is to help families in China to be able to own a better car.
“The support of the Vision Fund not only strengthens the Group's capital base, but also has the potential to boost our big data and AI innovation capabilities, which can be applied to the whole automotive retail value chain. In the future, the infrastructure and service of the entire sector will be significantly reconstructed by data technology innovation, promoting continuous improvements in service efficiency and consumer experience,” he adds.