CheDuoduo Raises $17.7 Million in Series A Funding Led by China Growth Capital, Source Code Capital Backs Used Car Trading 'New Services'

源码资本·June 13, 2018·0·0

Building an all-new "new services" brand for used-car trading.

Image source: Cheduoduo

Beijing Haoche Duoduo Technology Co., Ltd. ("Cheduoduo"), a "new services" platform for used-car transactions, recently announced its Series A funding round. The round raised $17.7 million, led by China Growth Capital, with participation from multiple institutions and individuals including Yixin Group, Li Xingxing, and Source Code Capital. Both China Growth Capital and Source Code Capital are well-known investment firms in the fintech and technology sectors, focusing on new finance, new industry, and new consumer investments. Yixin Group is a Hong Kong-listed internet auto retail trading platform backed by Tencent, JD.com, Baidu, Bitauto, and other internet giants.

Li Xingxing, one of the investors in this round, will become Chairman and President of Cheduoduo. According to official materials, Li has nearly ten years of experience in the automotive and motorcycle industries, and previously served as general manager and chairman of multiple subsidiaries under Geely.

Founders Zheng Wei and Cai Bo said the proceeds will primarily be used to build Cheduoduo's new "new services" brand for used-car transactions. Through technology upgrades and business model innovation, Cheduoduo will first establish a used-car consumer finance transaction service platform, connecting upstream to diverse used-car consumer finance products to create a "supermarket for used-car financial products." Through its direct-sales teams covering used-car markets nationwide, it will provide full-process services to used-car dealers and consumers.

On this foundation, Cheduoduo will partner with participants across the used-car transaction ecosystem to digitize financial service transaction scenarios, jointly upgrading the service network into a "new services" ecosystem for used-car transactions. Cheduoduo will continue using big data, artificial intelligence, and other technological means to build critical financial scenario capabilities, systematically improve anti-fraud capabilities, and enhance asset quality.

Image source: Cheduoduo

The founding team of Zheng Wei and Cai Bo each have over ten years of industry experience and are veteran entrepreneurs in the used-car space. Zheng previously served as CEO of Shuaiche, CEO of Kankanche, and Senior Vice President at Yixin Group. Cai was responsible for building the early Shuaiche used-car information system, and later served as COO of Kankanche and Vice President at Yixin Group.

On June 13, Haoche Duoduo Technology Co., Ltd. held a brand launch event to fully activate the new Cheduoduo brand. Zheng Wei stated that Cheduoduo will first further establish direct-service capabilities nationwide. Building on consumer financial services, it will later partner with strategic collaborators to add one-stop services including accompanied viewing and transaction, insurance, inspection and appraisal, extended warranties, and vehicle administration. Based on a systematic, intelligent technology service platform, and leveraging professional teams and internet technology applications, Cheduoduo will deeply connect used-car dealers and consumers, making every transaction "simple and reassuring."

According to available information, Cheduoduo has gone through several development stages including Shuaiche and Kanchewang, with operations covering nearly 100 cities nationwide and cumulative reach to over one million customers. During the "Shuaiche" brand phase, the company modeled itself after CARMAX, the largest used-car retailer in the United States, pioneering the large-format auto retail store model in China. It later created the "Kanche" brand, introducing service models such as "one-click distribution," "large volumes of genuine and valid vehicle inventory," and "accompanied viewing + financial scenario-based transactions."

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