Chehaoduo Group, the parent company of the used car marketplace Guazi, has recently raised an additional $200 million, adding to the $1.5 billion Series D round of financing raised earlier from investors including Softbank and Sequoia Capital China.
The new funds will be used for the development of “beyond-car” business verticals, and the strengthening of coordination between those new ventures and existing businesses like Guazi.
Softbank led Chehaoduo’s $1.5 billion series D last year. However, according to sources familiar with the matter, SoftBank was in contact with Chehaoduo as early as August last year hoping to make additional investments.
The investment comes on the heels of several business adjustments at Chehaoduo and the company hitting the goal of becoming profitable in the fourth quarter of 2019. According to Chehaoduo Group, its e-commerce business, including both new and used car sections, is now profitable.
In the past five years, Chehaoduo Group has been growing rapidly. Its secondhand car stores under the Guazi brand have been opened in more than 100 Chinese cities.