China Digest: Used car platform Cheduoduo, co-work space startup Distrii raise funds

June 14, 2018

Chinese startups Cheduoduo, a used-car platform, and co-working space operator Distrii have closed $17.7 million Series A investment and $23 million Series A+ funding round, respectively.

China Growth Capital leads used-car platform Cheduoduo $17.7m Series A

Beijing-based used-car trading platform Cheduoduo has secured $17.7 million in a Series A round led by China Growth Capital and joined by Yixin Group, Xingxing Li and Source Code Capital as well as other individual investors.

According to a report in local media, the funds will be used for strengthening operations and market expansion. The startup claims to have secured car dealership in over 90 Chinese cities.

Cheduoduo hopes to launch a set of automotive after-sale services including insurance, testing and evaluation, extended warranty and vehicle management.

China is seeing the increasing growth of online car purchases, giving rise to multiple used-car trading platform raising funds from prominent investors. Chezhibao recently raised $100 million from PAG and Tiantian Paiche raised a $180 million round backed by Tencent, SIG and SB China Venture Capital.

CDL-backed co-working space operator Distrii closes $23m Series A+

Chinese co-working space operator Distrii announced that it has closed a $23.4 million Series A+ led by Fenghua Capital and joined by other investors including Fesco. The startup had just raised a $31 million Series A round last September.

In an announcement, Distrii also said that it launched a “Smart City Renewal Fund” with Singapore’s City Developments Limited (CDL), which holds a 24 per cent stake in the startup, and Fenghua Capital. The fund size for the first phase of the fund will be 3 billion yuan ($470 million) and phase 2 will hit the 10 billion yuan ($1.56 billion) mark.

The fund will be used to help Distrii form a smart office chain by management of office spaces in the first and second tier Chinese cities, covering asset quality improvement to connecting offices via Internet of Things (IoT).

Founded in late 2015, Distrii has expanded to Singapore and major cities in China, and has established office spaces in more than 30 central business district areas. It claims its overall revenue for 2018 is expected to surpass 150 million yuan ($23.4 million).