ByteDance said to be raising $500 million for cap app Dongchedi
ByteDance is reportedly raising millions in a Series D funding round for its subsidiary Dongchedi (Dcar), valued at around billions prior to its expected IPO. With Sequoia China leading the investment and participation from KKR and General Atlantic, this move aims to streamline ByteDance's non-core businesses and bolster Dcar's growth in China's automotive market, providing vital services like car news and purchasing guides to consumers.
ByteDance said to be raising $500 million for cap app Dongchedi
ByteDance, the Chinese multinational technology company behind popular platforms like TikTok and Douyin, is reportedly raising $500 million in a Series D funding round for its subsidiary Dongchedi (Dcar) [1]. This investment round, which may be the last before the company's initial public offering (IPO), is expected to value Dcar at around $3 billion [1].Dcar, a one-stop platform for automotive information, transactions, and services, serves two main ends: providing car-related content and purchasing services to users and offering solutions for automotive brands and dealers [1]. With support from ByteDance's ecosystem, including Douyin, Toutiao, and Xigua Video, Dcar has experienced significant growth in its market share and influence in China's vast automotive consumer market [1].
The company's comprehensive and authoritative automotive information services cater to the strong demand for car-related information in China, with features like car news, industry updates, and vehicle evaluations [1]. Dcar also offers practical consumer guides on car purchasing and maintenance, making it a valuable resource for consumers navigating the car buying process [1].
Sequoia China is leading the investment in Dcar's Series D round, with an amount ranging from $400 million to $500 million [1]. Other investors participating in the round include KKR and General Atlantic [1]. This investment marks ByteDance's move to streamline its non-core businesses and focus on its core vertical categories [1].
ByteDance's decision to spin off Dcar and seek separate financing with the ultimate goal of an IPO is seen as a strategic move to provide the company with the necessary resources to grow and compete in the market. With its strong market position and valuable services, Dcar is poised for continued success in China's automotive market.
[1] EqualOcean. (2024, June 12). ByteDance's Subsidiary Dcar Plans to Raise $800 Million in Funding. Retrieved from https://equalocean.com/news/2024061221008
