Yongche has revealed in an internal letter that it has completed a D Series financing round and will restructure its shareholding structure to make Letv its largest shareholder alongside Ctrip and its own management.
The Yongche car sharing platform is also a contender in the chauffeur segment
In his letter, Yongche Herman Zhou said:
“Letv is a strategic investor in Yongche. After the investment Yongche will remain a company with independent operations, and both Letv and Ctrip will support our independent development and market opportunities. This is a good thing for the management and all our employees. On behalf of the company and the new investors, I undertake that the incentives and options previously released to employees will continue to be valid. Meanwhile we will also form an even better incentive plan with our new investor. Relevant employees will be informed of the details in the near future.”
He explained the company’s direction and reason for forming partnerships. “As everyone knows, Yongche pioneered the chauffeur service segment, but we feel that the future doesn’t only lie in chauffeur service but also in the bigger picture of car-sharing, and this is the area where we have to build our future. Based on this thinking, we have partnered with Haier Financial Services to make Haier Yongche Travel as well as other innovative cross-sector collaborations.”
Finally he gave some details about how its partnership with Letv would work. “In the next stage, we will first expand our investment on user experience and marketing to enable more consumers experience high-end individualized chauffeur service. We will also proactively collaborate with Letv in crossover marketing. Next we will further our cooperation with other areas of Letv’s ecosystem that includes smartphone, TV, content, malls, members and cinemas.”(Translation by David)
