Bitauto raises $300 Million, Valued at $1.4 Billion


Bitauto Holdings, the china based marketplace for automobiles, has raised $300 Million in a strategic round to be valued at $1.4 Billion. The latest round saw the participation from few of the biggest names in China including Baidu, Tencent and along with PA Grand Opportunity Limited. and Tencent have been early strategic investors in Bitauto and with the latest round, Baidu join the league. Rumors suggest that with the deal, Bitauto will now power the auto search on Baidu, which makes it a great move for both the platforms to complement each other in a longer run, considering both of them are the pioneers in their own fields.

Talking on the development, William Li, CEO Bitauto, expressed his excitement over strengthening of the strategic partnership with & Tencent and a new partner as Baidu. He further added that the important part is played by PAG, one of the biggest private equity firms in China.

Bitauto is a publicly traded company and looking at its rising revenue since a while, it is profitable at this point of time. The press note did not quite emphasize on how the company is going to use the investment, however, it stated that there were over 27 million leads along with over 50,000 transactions in the first quarter of this year.

There was recently a news about Bitauto being in talks with Uber to have a joint investment in Chinese carpooling startup Dida Pinche, however, that news didn’t quite get confirmed. With today’s investment, Baidu is now an investor in both of those startups and this might lead to something interesting in the time to come.

Talking about the investment, all the strategic investors, Tencent, Baidu and will get 2,471,577 shares valued at $20.23 each share. At the same time, the investment from PA Grand Opportunity Ltd comes in the form of convertible bonds due in 5 years and it will attract an interest rate of 2% per year.