Automotive Post Market Service Provider New Carzone Completes Financing of $200 Million Led by Asia Investment Capital and Alibaba
New Carzone, a one-stop automotive post market service platform, announced on Thursday that it had completed a D round of financing worth nearly 200 million US dollars, with Asian Investment Capital as the leading investor. Dragon Capital and Alibaba Group also joined the investment round.
This round of financing will be used for the company’s national market expansion plan for Tmall’s consumer Autocare stores, covering all aspects of automotive post market services.
New Carzone was established in 1995. With the growth of its business, the company has slowly become a professional auto parts supply chain service provider with more than 1,300 stores in China. At the beginning of its development, New Carzone won the favor of many investment institutions including Warburg Pincus, Yunfeng Fund, PAG, and many others.
In 2018, Alibaba became the largest shareholder of New Carzone and exclusively authorized the after-car business of Tmall and Taobao to the company, which enabled it to lay out the retail service network of car maintenance on the basis of its original business. So far, more than 1,500 stores under New Carzone’s “Tmall Autocare” brand have been set and more than 24,000 stores are being registered.
Liu Erfei, CEO of Asia Investment Capital, the leading investor in this round, said: “Asia Investment Capital is very optimistic about the long-term development trend of China’s automotive post market in the future. We believe that New Carzone’s strong supply chain, the brand of “Tmall Autocare” and the advanced SaaS system of F6 can empower small and medium-sized business owners in the industry.”
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With an growing number of vehicles in China and the current development of intelligent or smart technology in the country, capital markets are looking to invest in the automotive post market industry and in enterprises that play both ends of the digital supply chain and offline store network.
In recent years, with a younger domestic consumer crowd and the all-out application of digital technology, industry competition is shifting from basic auto parts supplies to auto repairs.
