A Chinese online car-services platform backed by investors including Goldman Sachs Group Inc. and Tencent Holdings Ltd. is seeking fresh funding at a valuation of about $4 billion, according to people familiar with the matter.
Shanghai Lantu Information Technology Holding Ltd., commonly known as Tuhu, is working with advisers on the new round that could raise at least $200 million from strategic and financial investors, the people said. The startup could raise more depending on investor demand, the people said.
Tuhu has been considering an initial public offering in Hong Kong or the U.S. as soon as this year, the people said, who asked not to be named as the matter is private.
Deliberations on fundraising plans are ongoing and details including size could still change, the people said. Tuhu cannot confirm the details of the funding round as uncertainties remain, its representative said in a statement in response to Bloomberg News query, adding that the startup doesn’t have any IPO plans.
Tuhu has become one of the major players in China’s highly fragmented automotive aftermarket sector since its founding in 2011. Its online platform allows car owners to purchase services and parts that can be installed at physical stores, according to its website. The Shanghai-based company collaborates with more than 13,000 stores in China.
Tuhu raised $450 million in 2018 in a funding round led by investors including Tencent, Carlyle Group Inc. and Sequoia Capital, according to a company statement. It also counts Baidu Inc. among its early backers.
Bloomberg