Alibaba-backed self-service car wash firm Yigongli (YGL), which was developed by Shanghai HELIOS Network Technology in China, has achieved a unicorn valuation of over $1 billion after raising “hundreds of millions of US dollars” across two tranches in its Series D round.
The transactions include a Series D1 round from Sigma Delta Partners Investment (SDP Investment), which focuses on prime properties in Tier I cities in China; and a Series D2 round from Goldman Sachs Asset Management, the startup announced in a press statement.
As part of the value add from the new investors, the investment and advisory services unit of Goldman Sachs will help YGL “pave the way” for the firm’s plans of expanding globally and attracting international high-end talent.
SDP Investment is expected to leverage its real estate capabilities to help select and acquire new locations for YGL’s car wash facilities, said the startup.
YGL, also known as “1km,” plans to use the new financing to advance the applications of automation techniques and the R&D of self-driving technologies.
Founded in 2014, YGL allows customers to purchase 24X7 unmanned car wash services and offers related after-sales solutions and products. As of August, the Hangzhou-based startup operates over 2,500 car wash stations nearby auto services shops, gas stations, office buildings, supermarkets, and parking lots across 138 cities in China.
The newly-minted unicorn, which has served over 12 million users, is looking to cash in on opportunities in the world’s largest automobile market. The number of registered vehicles in China has reached 384 million as of June, with cars accounting for over two-thirds of that number, according to the traffic bureau of China’s Ministry of Public Security. Official statistics show that newly registered cars in the country reached 14.14 million in the first half of 2021, up about 35.8% from the same period in 2020.
To fuel its growth in the market with rising demand, the startup has completed 10 rounds of equity financing since inception. In its latest Series C round, YGL secured a total of over 600 million yuan ($92.8 million) across three tranches of capital injections last May.
Its backers include state-owned insurer People’s Insurance Company of China (PICC), private equity (PE) fund Centurium Capital, and ClearVue Partners, a PE firm that focuses on China’s consumer sector. Chinese e-commerce giant Alibaba invested in YGL in 2018.