Saturday, 2024 May 25

Chinese car-sharing platform TOGO raises Series B2 from SIG, ZhenFund

Chinese car-sharing platform TOGO announced a US$ tens of millions Series B2 round led by SIG with participation from ZhenFund, Crescent Point, local Chinese media reports.

The company has raised more than US$72 million (RMB500 million) in a total of five rounds of financing since founded in 2015.

TOGO operates a model that is similar to bike sharing firms Mobike or Ofo, the difference here is, instead of pedalling a bicycle, you are renting a car to drive around with TOGO.

Use of the TOGO is quite easy, users download its app, using LBS (location-based services) technology to locate the nearest available car, unlocking the car via the app and just driving away. Users don’t have to return the car to a designated area which makes it an even more convenient experience.

The company currently has operations in Chinese higher-tier cities including Beijing, Shanghai, Guangzhou, Shenzhen and Xi’an. It’s fleets consisted of cars including BMW Mini, Mercedez-Benz Smart, Audi A3, Jeep Renegade. etc.

The company claims that it has already turned a profit in Beijing, while in Shenzhen and Xi’an, about to break even.

Conventional wisdom holds that, the car-sharing business is beleaguered by the profitability dilemma due to factors like asset- and operation-heavy, longer ROI cycle, etc.

That said, the company’s CEO, WANG Lifeng, believes that, the key to profitability is the scale. TOGO operates a fleet of at least 1,000 cars in cities it has a presence. Additionally, the firm taps technologies such as IoV (Internet of vehicles) and AI to ensure a more efficient utilisation of the fleet, resulting in higher utilisation rate.

He believes that, once users changed their “car ownership” mindset after getting used to car-sharing services, his company might be looking at a hundreds of billions market in China.

Editor: Ben Jiang

36Kr Global Writers
36Kr Global Writers
The tech ecosystem is roaring. Unicorns valued at billions of dollars have emerged worldwide, while venture capital and strategic investors are constantly on the lookout for the next big thing. 36Kr Global is committed to establishing ties between global stakeholders and providing the most vital information about China’s tech scene and capital markets.

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