SHANGHAI, March 9, 2015 – Baird Capital announced today that its China Growth Equity team has entered into agreement to lead a Series A financing round in Carsing, a Shanghai-based used car auction platform. The capital will support Carsing’s expansion to serve China’s automotive market, the largest and fastest-growing in the world. Terms of the deal, which is subject to standard registration and pre-closing conditions, were not disclosed. FLAG Squadron Capital and Delta Capital also participated in this financing round.
Carsing was founded in 2009 by Lin Zhe, a seasoned entrepreneur with deep experience in the Chinese automotive market. The company, which currently has 15 locations in Shanghai and Shenzhen, aims to improve consumers’ experiences when selling used vehicles by providing inspection services and facilitating transactions to automobile dealers through wireless mobile auctions. Through this financing, the investors will leverage their knowledge of the Chinese market to help grow Carsing’s domestic footprint.
“The Chinese automotive market is a rapidly expanding opportunity and Carsing has pioneered a unique business model,” said Yongshan Zhang, Principal with Baird Capital’s China Growth Equity team. “We found Carsing’s service model answers a critical demand in the supply side of the market, and its experienced leadership and solid track records are an excellent combination. We are excited to partner with the company to drive further business growth.”
“We’ve monitored Carsing’s growth for a couple years,” said Greg Ye, Partner with Delta Capital. “Carsing has established a clear leadership position in Shanghai and successfully expanded to Shenzhen in 2014. We believe Carsing is properly poised for further national expansion with this round of financing.”
“The used car landscape in China today is hindered by information asymmetry and inefficient distribution channels,” said Zhe, Founder and CEO of Carsing. “We strive to bring transparency and order to the market through disintermediation and rigorous transaction rules. This year we plan to grow to at least 9 cities by opening 30 stores, and continue to provide the best experience for our customers.”
About Baird Capital
Baird Capital makes venture capital, growth equity and private equity investments in strategically targeted sectors around the world. Baird Capital’s China-based growth equity team provides capital to companies with substantial operations and opportunities in China. Baird Capital leverages its in-depth sector knowledge, experienced investment team and network of relationships to serve as a value-added partner for its portfolio companies. Baird Capital provides operational support to its portfolio companies through teams on the ground in Asia, a pro-active portfolio operations team and a deep network of relationships which together strive to deliver enhanced shareholder value. Baird Capital is the direct private investment arm of Robert W. Baird & Co. For more information, please visit www.BairdCapital.com.
About FLAG Squadron Capital
FLAG Squadron Capital Management is an independent private capital solutions provider with $4.7 billion of assets under management. Founded in 1994, FLAG offers a diverse platform of investment options that spans venture capital, private equity, and real assets, as well as customizable fund administration and reporting services. FLAG is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. For more information, see http://www.flagcapital.com.
About Delta Capital
Delta Capital is a leading growth equity investment firm in China, specializing in early growth equity investments in consumer and technology sectors. Founded in 2010 by several industry veterans, Delta has raised and managed two RMB funds and one USD fund. With an experienced team combining decades of investment and executive management experience in China, Delta can provide entrepreneurs not just growth capital, but also significant strategic and operational help. Delta was named a Top 20 Domestic VC Firm by Zero2IPO and The Best Growth Equity Investor by ChinaVenture in 2014. For more information, please visit: http://www.delta-capital.cn.
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