Automotive financing firm Yixin Capital has landed $550m from a consortium of heavyweight Chinese internet firms.
Yixin is a subsidiary of automotive information service Bitauto Holdings. The financing comes from Tencent, Baidu and JD.com.
Yixin Capital says that data, users and capital resources contributed by the investors will allow it to perform more accurate and efficient credit evaluations and increase its ability to provide financing products and services to targeted customers.
The relationship with the Chinese web giants will also enable Yixin to drive greater customer acquisition and brand awareness.
China’s car market continues to grow at a rapid pace and with it other industries such as second-hand marketplaces and financing to help users purchase vehicles.
Research from Deloitte claims that penetration of auto financing is only 20% in China, lower than the 50% seen in most developed nations. It is expected to reach 50% by 2020, highlighting the opportunity for FinTech brands such as Yixin in the market.
“Yixin Capital is an important part of Bitautos platform as we work to create the best possible car purchasing experience for Chinas new and used car consumers, William Li, CEO of Bitauto.
We are confident that with the strong support of our partners, Yixin Capital is well positioned for long-term success in Chinas online automotive financing industry.”
Bitauto will continue to hold a 47% stake in the company. It did not reveal how much each of the investors will take.
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