Become a unicorn at birth
The three parties that make up this new company are Ali, which has 140 million car owners' data. It is said that it is currently the largest online car owner traffic platform in the country; the other is the superman supply chain section of Jingu shares, which is in the supply chain and auto service stores. SAAS, store integration and car owner service areas have industry advantages; one is Kangzhong Auto Parts, which has more than 500 directly-operated auto parts stores nationwide and a mature supply chain system.
From online traffic to offline terminals, and the most difficult supply chain for automobile service to standardize, this merger seems to be in place in one step. The new company has not hesitated to play the banner of "China's largest auto service support system", and plans to use the direct supply of spare parts brand, warehouse distribution system, new retail and store SaaS system, customer-centric, supply chain-centric, and Alibaba's advantages Resources empower all maintenance companies. The certified terminal will be awarded the "Tmall Station" brand by Tmall.
It is reported that the new company will launch new retail auto service stores in September, with the goal of upgrading 30,000 “Tmall stations” within 5 years.
Not only is the background bright and large, the valuation of this new company is also quite amazing. Alibaba brought 1.6 billion yuan in cash (or equivalent U.S. dollars) to enter the venue, and will grant the new company Taobao and Tmall the exclusive right to operate the corresponding after-car service categories (excluding auto supplies). According to the tripartite agreement, Ali will hold approximately 46.97% of the equity in the joint venture company, making it the largest shareholder of the new company. Teweilun will hold approximately 16.27% of the equity of the joint venture company and will become the second largest shareholder of the joint venture company. The other shareholders together hold approximately 36.76% of the equity of the joint venture company. Shang Baoguo, the former founder and president of Kangzhong, served as the first CEO, and Cai Yongzhi, head of Tmall automotive aftermarket, served as COO.
If estimated by Ali’s capital contribution and shareholding ratio, the new company is valued at about 3.5 billion yuan. In fact, the company has introduced well-known investors including Warburg Pincus and Yunfeng since its establishment. According to sources close to the new company, this The scale of the round of financing should be more than 1 billion yuan, and the overall valuation of the new company is at the tens of billions level.
Since the Internetization of the trillion-dollar automotive aftermarket, everyone believes that a company with a valuation of 10 billion will be born here. However, in the past eight years, there has been only one unicorn, Tuhu, with a valuation of US$1.185 billion. This new company was valued at tens of billions as soon as it was established, which shows Ali's determination in the field of auto service.
The S2B2C model is the way out?
In fact, Ali has never been absent from the cake of the automotive aftermarket, and the "branding" has already been done. As early as the 2016 Ali Car Terminal Ecological Conference, Ali stated that there are currently about 400,000 stores in the offline automotive aftermarket. In fact, only 20,000 stores are needed, and most of the stores will be eliminated. . In addition, it plans to open 20,000 car terminal stores nationwide by the end of 2017.
However, this goal has not been fulfilled. The essence of the car terminal is online dominance and offline, with the attitude of "traffic" subverting everything to enter the traditional car aftermarket. Before Ali, there are lessons from Zhuge car repair and Bo Pai car maintenance. Will this new company be a combination of 1x3>3, or will it follow the footsteps of the scooter terminal?
"This (new company) is a boutique case of S2B2C in the automotive aftermarket. There is no second one yet." Cai Jingzhong, founding partner of Galaxy Ventures, told Xinya that he was the first round investor of Kangzhong Auto Parts. Kangzhong Autoparts has been in the auto parts supply chain for more than 20 years. It does not touch the whole car parts or the factory. It only does the B2B business of the whole series of auto parts supply chain. Copy, more than 500 directly-operated stores and thousands of professional after-sales service personnel were quickly copied across the country. This is Cai Jingzhong's original intention to invest in Kangzhong, and it is also the reason why the founder, Shang Baoguo, was able to become the first CEO of Kangzhong Auto Parts, which was only integrated into the B+ round of the joint venture with Alibaba and Jingu, two listed companies.
After Ali proposed the new retail model of S2B2C, it has been looking for suitable targets in the field of auto service. After suffering from the offline weakness, Ali chose a joint venture partner that intensively cultivates offline. Cai Jingzhong is very optimistic about this new company. First, the scale effect gives the B-end, which has long lacked standards, an opportunity to "standardize"; secondly, it can provide better services for the C-end by connecting online and offline, and "service" is the biggest change in the auto service field in recent years.
Among the players in the traditional automotive aftermarket, large 4S stores control the absolute right to speak, while a large number of small and scattered mom-and-pop stores lack service standards, making the market in a supply-driven state for a long time. In recent years, supply-driven is gradually transformed into consumer demand-driven. In Ali’s view, S2B2C is the necessary stage for the transition from B2C to C2B. Cai Jingzhong also said that Galaxy Ventures is also looking for S2B2C early projects in the automotive aftermarket, and currently has an overall layout.