Car-sharing Platform TOGO Raised $22 Million in B Round

Car-sharing Platform TOGO Received USD 22 Million in B Round Financing with SIG as Keading Investor and Zhen Fund as Following Investor

Car-sharing company TOGO announced it raised $22 million in its B-round financing. The news was a relief for the industry, which has been reeling since EZZY’s collapse. The investment was led by SIG Asia Investment, and it will be continued by Zhen Fund, a leading investor in A-round financing. TOGO became the first domestic car brand to receive financing from a global mainstream investment fund. The company received 40 million yuan in A-round financing from Zhen Fund and Tuopu Fund.

TOGO CEO Wang Lifeng said his company would use the money to expand its business in first-tier cities and to accelerate business deployment in second- and third-tier tourist cities. TOGO will launch more car models and put tens of thousands of shared cars on the road. Currently, TOGO has rolled out its service in Beijing, Guangzhou, Shenzhen, Shanghai, and Chengdu. Its fleet includes Minis, Smarts, Jeeps, Audi A3s, Citroens, and Peugeots. Users must deposit 1,500 yuan before taking a car. TOGO will refund the deposit 20 days after confirming that the user has no outstanding fines.

In its next step, TOGO will strengthen its expansion into new cities, such as Chongqing, Sanya and other tourist destinations.

TOGO will enhance the efficiency of its vehicle operations with intelligent data operation systems, a central dispatching system, vehicle control, and other new measures. It plans to profit from the market, make layouts, and enhance the user experience. Profit is not its current goal.

SIG, which focuses on mobile Internet and consumer upgrades, said it recognizes TOGO’s technological path, operating model, and development speed in the shared travel market.

This article originally appeared in 36kr and was translated by Pandaily.