Shanghai-based used car trading platform TTP Car Inc. has signed an agreement to raise $168 million from returning investor Autohome Inc., an online destination for automobile consumers.
As part of the deal, New York-listed Autohome has the right to purchase up to $200 million, in total principal amount, of one or more convertible bonds to be issued by TTP Car, said Autohome in an announcement on Tuesday.
“We will consolidate our competitive capacity in the used car e-commerce industry, and we will also make efforts to maximise our auction service through the innovation of operation, user experience, and technology,” said TTP’s founder and CEO Weiwei Wang.
TTP and Autohome will also co-operate to sustain the second-hand auto sector by enhancing supply chains in the country.
TTP, also known as Tiantian Paiche, is a customer-to-business e-commerce platform for used car consumers. It improves trading efficiency through internet technology and big data. Apart from trading service, it also offers one-stop services such as auto-detection, auction, valuation, and finance. Tiantian has set up over 60 offline trading service centres.
“By working closely with TTP, Autohome will integrate into the upstream supply of used cars, leverage the transaction business to further develop its auto finance operations, and build a comprehensive C2B2C ecosystem for used-car transactions,” added Min Lu, chairman and CEO, Autohome in the statement.
The sole investor Autohome primarily offers user-generated content for auto consumers, which includes an automobile library, automobile listing information, auto insurance and financing, and aftermarket maintenance.
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