New energy vehicle rental service platform Dishangtie Car Rental (地上铁) closed its Series B funding round worth USD 70 million today. This round of financing was led by Jeneration Capital; Far East Horizon and Idinvest Partners also took part. Index Capital played a financial advisory role. Company's officials said, the money raised will be used to further improve the urban services quality, boost operational efficiency and enhance the service network density.
Prior to this latest round of financing, the Shenzhen-based company has raised more than CNY 650 million (USD 94 million) in total known funding obtained from a number of notable investors such as Qiming Venture Partners, Matrix Partners China and Bojiang Capital Management Group. It is important to stress that the list of investors has completely changed this time: existing backers didn't enlarge their stakes.
Dishangtie (DST) is a 2B company focusing on providing rental services. Its fleet comprises electric vehicles only. According to the company's official website, there are 13 different car models of the four size-based categories for a short-term and long-term lease. Besides, the firm operates as a full-service platform, providing core facilities (such as charging piles) maintenance, insurance, routine repairs and other auxiliary services.
DST-branded vans and trucks now can be met in 22 biggest cities across China, and the company is planning an expansion to the seven new urban areas countrywide. However, the network of charging stations is still undeveloped as the systems are applied only in the Pearl River mega-city and Chengdu. However, the cars are still got charged by use of other private and public charging systems.
China is the largest electric-vehicle market with more than 1 million EVs sold in 2018. The industry is expected to keep on growing rapidly, ignited by both objective (tech improvement) and subjective (state support) forces. As for the transportation market in China, it is, indeed, bullish, and the room for growth is huge. Dishangtie might consider breaking into other financially sound regions such as Yangtze River Delta Economic Region or Bohai Economic Rim in the near future.