Auto financer Chedai grabs $52m Series B

Chinese used-car financing platform Chedai has raised ¥360m ($52m) in a Series B round led by Youjin Capital and Addor Capital.

Funding for the auto-credit company also came from Matrix Partners, Chinese lending firm CreditEase’s New Finance Industry Investment Fund and online finance platform 360jinrong.

The Shanghai-based firm offers lines of credit of between ¥50,000 ($7,200) to ¥50m ($7.2m) to companies operating in the auto industry such as dealerships or rental firms.

Chadai’s loan terms range from one month to two years with the firm also providing services such as inventory financing, purchase-order financing, in-transit inventory financing and commercial vehicle financing.

The company also offers services to consumers with the launch of an information-sharing platform dubbed DASS.

The platform allows users to search vehicle’s make, model, mileage and status using its Vehicle Identification Number.

Launched in 2013, Chedai claims to be partnered with 70% of China’s large and mid-sized used car dealerships spanning 80 cities.

It says it now accounts for 6% of the regions total used car market and to have issued more than ¥12bn ($1.7bn) in loans last year alone.

The new funding follows a ¥217m ($31m) Series A+ round in April 2016 led by China Growth Capital and it claims it is preparing to raise a Series B+ round already.

Copyright © 2017 FINTECH GLOBAL