(Yicai Global) Sept. 25 -- Beijing Rongju Youhe Network Technology Co. said that it has secured about USD15.2 million (CNY100 million) from Zhongsheng Wode (Beijing) Fund Management Co. through its A-round of financing. The firm will use the funds to develop its internet-based car finance platform, Miao You Che, and to build more offline locations based on the chain store and franchise operating models.
The Beijing-based tech firm will increase investment in the development of the Miao You Che brand as its top priority, 21st Century Business Herald reported.
Miao You Che is a car-leasing platform that offers customers with one-stop auto financing services. It has entered 48 cities in six provinces less than a year after its inception, and its auto services have benefited tens of thousands of households.
Rongju Youhe will build brick-and-mortar Miao You Che stores across the country, opening stores in Hebei, Shanxi, Shannxi and Wuhan, the company's chairman Gu Fei said. It plans to increase the total number of Miao You Che shops to 300 by the year's end and to 1,000 next year.
China's car finance market has developed rapidly in recent years, and experts expect the market volume to hit CNY127.8 billion this year.
"After the investment, Zhongsheng Wode will help Rongju Youhe achieve its growth targets of opening 1,000 offline stores and acquiring one million car buyers and 100 million app users, as well as the creation of a 'Product+Service+Customer' auto ecosystem," said Chen Nan, president of Zhongsheng Wode.