Beijing-based car rental service provider Yidao Yongche has established a strategic partnership with Haier Financial Services China Co., Ltd. to provide financial leasing services to Chinese small and medium sized car rental firms, according to Chinese media reports.
Haier Financial Services China, a financial leasing arm established by Chinese consumer electronics maker Haier Group in Shanghai’s free trade zone, will provide financial leasing services to over one thousand car rental firms on Yidao Yongche’s online platform.
The two parties will establish a joint company named Haier Yidao Auto Financial Services Co., with initial capital of RMB3 billion (US$490 million), to push the expansion of the car rental O2O (online-to-offline) business.
This will help expand the businesses of small and medium sized car rental companies, therefore enabling Yidao Yongche to provide more comprehensive and diverse car rental services to its users.
Founded in 2010, Yidao Yongche previously received several million U.S. dollars series A financing from Morningside Ventures and Qualcomm Ventures in 2011.
It received US$20 million series B round of financing led by CBC Capital, with participation from Morningside Ventures and Qualcomm Ventures in April, 2013.
Last December, Yidao Yongche received US$60 million series B+ round led by Ctrip and DCM, with participation from existing investors, CBC Capital and Morningside Ventures.
The company also received several million RMB of angel investment from Zhen Fund at the time of its launch.
