ByteDance plans to spin off Dcar, raising $800 million with a valuation of around $3 billion. The funding round, led by Sequoia
Equal Ocean has learned that ByteDance's subsidiary Dcar, also known as Dòngchēdì in Chinese, is planning to split off its business and raise $800 million in funding, with an estimated valuation of around $3 billion.
This financing round may be the last one before IPO and is expected to be the only fundraising effort. ByteDance also plans to open up the opportunity to invest to its minority shareholders.
According to reports, Sequoia China will lead the investment with an amount ranging from $400 million to $500 million. Additionally, KKR and General Atlantic will also participate in this round of financing. ByteDance's decision to spin off Dcar's business and seek separate financing with the ultimate goal of IPO is seen as the company's move to streamline its non-core businesses and abandon the previously unsuccessful diversification efforts.
As a product deeply rooted in vertical categories under ByteDance, Dcar's main battlefield is its standalone app - Dòngchēdì.
As a one-stop platform providing automotive information, transactions, and services, Dcar serves two ends: providing car-related content and purchasing services to users, and providing solutions for automotive brands and dealers. With support and traffic from ByteDance's ecosystem, including Douyin, Toutiao, and Xigua Video, Dcar has received significant assistance in its early rise and is responsible for the overall operation of automotive content on these three major national apps.
Currently, Dcar offers comprehensive automotive information services, including car news, industry updates, and vehicle evaluations. In China's vast automotive consumer market, there is a strong demand for car-related information, and Dcar meets the needs of a large number of users with timely and authoritative information. Additionally, Dcar provides practical consumer guides such as car purchasing and maintenance, offering consumers powerful references and guidance for car buying.
Overall, Dcar's market share and influence in the Chinese automotive market continue to grow. Its comprehensive and authoritative automotive information services and practical consumer guides are well-received by users, while also providing effective promotion and service channels for various segments of the automotive industry.
The main difference between Dcar and its competitors such as Autohome and Yiche.com, which are also in the automotive vertical category, lies in Dcar's main battlefield being its standalone app, aligning with the broader trend of mobile internet development. According to data up to 2023, Dcar's three core data points are as follows: 1. Mobile DAU exceeds 8 million; 2. Car content creators exceed 6.34 million; 3. Car interest users reach 498 million. With such data, Dcar is well-equipped to go independent and move towards an IPO.