Yangche51.com, an automotive aftermarket online service company established less than two years ago, has recently been the target of numerous multinational investing enterprises, with 16 major transnational venture capital and private equity firms having expressed interest in the company.
"We were told [by Yangche51.com] that we were the twelfth venture capital firm contacting it. Just on our way out of the conference room, we found [representatives from] four or five other companies we familiar with in the waiting room," a partner of a major multinational VC, who wishes to remain anonymous, stated. "The aftermarket online service sector would be the next major investment focus in China. We expect one or two grand enterprises with market value over $30 billion to $50 billion emerging in this e-commerce business ecosystem eventually."
The above source also revealed that, since Alibaba Group's successful US public listing and the numerous global records it has set, multinational firms are exploring the next new investment opportunity in China. With the structure of the Chinese market for e-commerce enterprises trading in products already pretty much settled on, investors are turning their sights to e-commerce enterprises providing services. The scope of the automotive industry in China and the sheer number of services it covers are major reasons why it is the focus of attention. Any entrepreneurial company that manages to establish itself in the sector during its infancy will benefit substantially.
The source continues,"It is too early to judge whether [Yangche51.com] is a perfect enterprise. But how can we successfully open up the aftermarket online service sector? Currently it is presently very hard to find a single solution. A great deal of cross-industrial experience and abilities are needed, in order to ensure the long-term success for the company."
