Vehicle leasing platform Yichechuxing receives USD 26M for financing
Founded in: 2017
Financing status: RMB 175 million (USD 26 million) for financing in 2017
Vehicle leasing platform, Yichechuxing, received USD 26 million for financing on December 12 to expand its services to more cities.
Yichechuxing is a vehicle leasing platform that provides customers with vehicle leasing services based on its leading financial modes. Its customers can easily rent a car from Yichechuxing’s offline outlets during the leasing period once their applications are approved. They have the vehicles’ right of use, while the ownership belongs to Yichechuxing. While the leasing period is closed, customers can choose to purchase the vehicles they rent from the company, and the rent they paid before will be calculated as part of the installment to purchase the vehicles.
In 2016, the permeability of the Chinese auto financing and leasing business was about 35% and 5%, respectively, while, in the U.S., it was as high as 82% and 48%. However, the Chinese auto market is growing with its large population, so we can expect room for improvement and innovation in the Chinese auto financing and leasing market.
Yichechuxing plans to integrate resources from vehicle manufacturers and dealers, among others, to build vehicle installment solutions for customers with higher efficiency. Currently, the company’s services cover more than 100 cities, including Beijing, Tianjin, Shanghai, Chengdu and others. At present, it has expanded its services to target smaller cities, such as second, third, and fourth-tier cities in China.
This new financing round was led by Kangmei Group, which joined many listed companies. The capital will be used to optimize its services for an enhanced customer experience, further investment in building leasing businesses, as well as expanding to more cities.
（Top photo from yicartrip.com）