July 6 news, Baturu, an all-vehicle parts auto parts e-commerce platform, announced that it has completed a C-round financing totaling US$100 million, led by Warburg Pincus, with follow-on investment from existing investor Zhongding Venture Capital.

Baturu founder and CEO Zeng Wan Gui stated: "The completion of this round of financing, especially Warburg Pincus's investment and support in Baturu, will further strengthen our refined operations, improve the offline warehousing and logistics system, and further expand market coverage nationwide. Next, we will focus on the construction and operation of the South China central warehouse."

Zeng Wan Gui introduced that next, Baturu will continue to deeply cultivate the three major areas of database, system, and supply chain. At the same time, adhering to the concept of openness and inclusiveness, it will connect other areas of the automotive aftermarket, such as insurance claims assessment, supply chain finance, automotive repair technology, brand and product marketing channels, automotive culture, etc., fully leverage the value potential of big data, and provide more services to the industry.

The "China Automotive Aftermarket Supply Chain White Paper" released by Roland Berger shows that China's auto parts market has grown rapidly, with a compound annual growth rate of 20% from 2011 to 2016, and it is expected that the overall scale of the parts market will exceed 800 billion yuan by 2022.

Hu Zhengwei, Executive Director of Warburg Pincus, said in an interview with 21st Century Business Herald reporter: "Although the market is huge, the entire auto parts supply chain industry is very fragmented. In China, the extremely fragmented market lacks unified standards, and the multi-level and irregular distribution and sales system has led to serious resource waste and low efficiency in the industry."

"The Chinese market still has very large integration potential compared to overseas markets, which also provides great opportunities for industry leaders like Baturu." Hu Zhengwei introduced that in the Chinese auto parts supply chain sector, no company's market share exceeds 1%, while in comparison in the United States, the top 5 auto parts retailers hold more than 30% of the market, with a market value exceeding US$76 billion.

As of now, Baturu, which has been established for less than 4 years, has received favor from the capital market and has become the company with the highest financing amount in the automotive aftermarket supply chain sector. In early 2015, Baturu received a 50 million RMB A-round financing from Qifu Capital and others; in 2016, Baturu received a 100 million RMB B-round financing from Huachuang, Zhongding and other capitals. (21st Century Business Herald · Zhao Na)

(Original link: Deeply cultivating auto parts supply chain: Baturu receives US$100 million C-round financing led by Warburg Pincus)