HONG KONG – Tuhu.cn, an online B2C e-commerce platform for automotive aftersales products and services, said on August 11 that it had closed Series-C funding led by Joy Capital, Welkin, Far East Horizon, and Haitong and further joined by Legend Capital and Qiming Venture Partners.
Founded in 2011, tuhu.cn has over 15 delivery centers and 6,500 location-based car services in 260 cities across China. It provides a wide range of automotive products and services like tires, maintenance supplies, accessories and car washing for its customers through its website, mobile apps, hotline consulting and third party e-commerce platforms. Besides, its website or mobile apps can offer individualized recommendation lists of products according to different vehicle types, manufacturing dates and driving ranges. All these recommended products can be sent to the local car service shops to get installed. Moreover, efforts have been made by tuhu.cn to expand its automotive aftersales service to include a reservation order service for car washing or other car services.
Chen Min, founder and CEO of tuhu.cn, said, “It is necessary for most automotive products and services to have offline physical service centers. We have extensive local service network, which is featured with convenience, price transparency and rich choices, to ensure a good customer experience. This is well beyond the power of traditional 4S shops and low-end service shops.” He added that, “This round of funding indicates the confidence the investors hold in the competency and potentials of tuhu.cn. Meanwhile, we are happy that tuhu.cn is to be further powered due to the resources and capitals brought by the investors.”
Liu Erhai, founder and executive partner of Joy Capital, said, “The core team of tuhu.cn is indeed very excellent. They have extensive experience not only in the internet operations but also in the automotive business operations, which is well capable to free the drivers from the concerns of car maintenance and repair problems.”
Zhang Siliang, board member and president of Welki, said, “Tuhu.cn has successfully utilized its strength in its online tire replacement business to become an e-commerce platform for one-stop automotive aftersales services. China has a large automotive aftersales market due to the aging vehicles and increased sales volume of used cars, which shows signs of the potential of further growth of tuhu.cn in the near future. For instance, the overall aftersales market volume reached up to $90 billion in 2014 and is anticipated to continue its growth in the near future.”
Yang Jun, head of Far East Horizon, commented, “The automotive industry is currently at a turning point, where qualified service has to be maintained to catch up to the rapid pace of the development of overall automotive maintenance market. Tuhu.cn has huge growth potential under the current circumstances of increasingly aging vehicles and the post-90s generation to become the main drivers.”