Tencent-Backed Used Car Marketplace Seeks $200 Million in Fresh Funds

Beijing Taoche Technology Co., a used car sales platform in China, is considering raising as much as $200 million in fresh funds, according to people familiar with the situation.

(Bloomberg) — Beijing Taoche Technology Co., a used car sales platform in China, is considering raising as much as $200 million in fresh funds, according to people familiar with the situation.

The company is working with an adviser on the new funding round, the people said, asked not to be identified discussing a private matter. It is currently valued at about $1 billion, they said. Taoche is targeting an initial public offering as soon as 2024, and is considering the US among potential listing venues, the people said.

Hong Kong-listed Yixin Group Ltd. transferred ownership of Taoche to a new entity in 2018, which separately agreed a preferred share subscription with Tencent Holdings Ltd. and JD.com Inc., an exchange statement shows.

Taoche agreed in late 2020 to a 500 million yuan ($70 million) investment from a vehicle backed by China’s Ningbo city government, a statement shows. The investment was agreed on the condition that Taoche must complete an IPO within three years, or longer if the parties consent to an extension, according to the statement.

Deliberations are ongoing and details such as the fundraising size and IPO plan could change, the people said. Representatives for Taoche and Yixin Group didn’t respond to requests for comment.

Several second-hand car marketplaces in China have recently been considering first-time share sales. Chehaoduo Group was weighing a potential listing in Hong Kong, Bloomberg News reported in 2021, while Tuhu Car Inc. refiled in March for an IPO in Hong Kong.

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