The SoftBank Vision Fund I, the $100bn investment vehicle of telecoms conglomerate SoftBank, and VC firm Sequoia Capital China have committed an additional $200m to China-based automotive e-commerce platform Chehaoduo, bringing its series D round to $1.7bn

The series D extension will be used to expand the company’s after-sales offering, bolster operations of its car trading portals and seek strategic collaborations. SoftBank had already invested through its Vision Fund, supplying the initial $1.5bn tranche in February 2019.

Online classified listings operator agreed to sell part of its stake to an unnamed third-party investor for more than $713m when Chehaoduo announced its first series D tranche.

The company has raised more than $3.5bn in total equity financing.

Spun off from classified marketplace Ganji in 2015, Chehaoduo has developed trading platforms for new and used motor vehicles, while offering automotive parts, car financing and maintenance services. Because the company’s business involves selling used vehicles, spare parts and maintenance services, it is somewhat countercyclical to economic downturns.

Chehaoduo is part of the broader vehicle e-commerce marketplace space, which has attracted much attention from corporate investors in recent years. The number of corporate-backed rounds reached 32 in 2017, while rising valuations drove the total estimated capital in such rounds to $4.07bn in 2018. Both metrics have since dropped.