Vehicle service specialist site Tuhu raises $100m for expansion drive

Source:Agencies-Global Times Published: 2015-8-11 23:13:01

Tuhu, a Chinese online platform that provides vehicle services and products, said on Tuesday that it raised about $100 million from a group of investors including venture capital firm Joy Capital.

The funds will be used to expand its distribution network and warehouse facilities.

Tuhu's clients can buy tires and other accessories, as well as book a vehicle wash at one of its 6,500 store partners through the company's website, mobile app or call center.

Joy Capital, whose founders include the former head of telecommunications investments at Legend Capital, led the funding round, Tuhu founder and Chief Executive Chen Min said.

Other investors included private equity firm Welkin, leasing company Far East Horizon Ltd and existing Tuhu investors such as Legend Capital and Qiming Venture Partners.

This is the third round of financing for Tuhu, which was founded in 2011.

Companies such as Tuhu that help link mobile Internet users to off-line services in their neighborhoods have seen a surge in investments as companies from China's biggest Internet search engine Baidu Inc to e-commerce giant Alibaba Group Holding look to expand into online-to-offline (O2O) businesses.

The revenue of China's after-sales auto service market is estimated to surpass 700 billion yuan ($110.7 billion) in 2015, and that may increase to 4 trillion yuan in 2020, vehicle news portal yescar.cn reported on Monday.

"We see huge opportunities for the development of the O2O market. In the Chinese mainland, we are just at the initial stage of taking off," Chen said.

Tuhu generated revenue of 300 million yuan in 2014. Revenue this year is expected to reach 1.5 billion yuan, media reports said.



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