CDH Venture Partners has led Qiming Venture Partners and JAFCO Asia to invest $20 million in a second round of funding for eHi Car Rental, an auto rental and travel services company.
CDH declined to comment. Qiming and JAFCO Asia did not respond to requests for comment at press time.
Founded in 2006 and based in Shanghai, eHi Car Rental offers car rental services across more than 70 cities in China. The company has approximately 2000 vehicles and has offices in roughly 30 Chinese cities.
The investment will be used to expand its existing fleet of vehicles, increase its number of offices and augment its sales network, according to Zhang Ruiping, founder and chief executive officer of eHi Car Rental, in a statement.
CDH Venture Partners is the venture capital arm of Beijing-based CDH Investments. The firm focuses on investments in China’s consumer goods and services, education, healthcare, information technology, new energy and new media sectors.
Qiming first invested in eHi Car Rental in March 2008. The China-focused firm closed its second fund on $320 million in May 2008, which targets the media and internet, technology, healthcare and consumer sectors. The fund primarily invests at the early stage, though it also makes a few growth and expansion capital investments.
Japan-headquartered JAFCO Asia has offices in Singapore, Hong Kong, Beijing, Taipei and Seoul. It typically invests in companies in technology sectors and has more than $1.2 billion in funds under management.
Other firms in Asia, which have also invested in car rental businesses, include Sequoia Capital India and Pakistan-based JS Group. Sequoia Capital India invested $7 million in Carzonrent India, the exclusive licensee of Hertz in India while JS Group acquired a 60 percent stake in Hertz’s Pakistani operations for an undisclosed sum.