Shanghai-based car marketplace Cango Inc. filed with the Securities and Exchange Commission to raise $300 million for an initial public offering on the New York Stock Exchange last week as the auto loan facilitator continues to grow.
Founded in 2010, Cango helps facilitate the consumer through the car buying process by connecting customers with financial institutions and dealerships, according to the company’s filing. As of March, Cango works with 11 third-party financial institutions including Jincheng Bank, Jiangnan Rural Commercial Bank, and Shanghai Autohome, which provides leasing and is in the process of becoming Cango’s wholly-owned subsidiary upon completion of an acquisition.
“According to the Oliver Wyman Report, we cover the largest number of new car dealers in China, and the outstanding balance of financing transactions we facilitated was the largest among automotive transaction service platforms in China as of December 31, 2017,” the company noted.
Cango facilitated $900 million of auto originations for its bank partners in the three months ending March 31 — a 7.2% increase compared with the same period the year prior.
As the company has increased its financing transactions, it has also decreased its reliance on Jincheng Bank. In the first quarter, Jincheng Bank represented 33% of the total amount financed on Cango down from 95.6% the same period the year prior.
The online marketplace also works with 37,667 registered dealers and 29 other industry participants, including OEMs, online advertising platforms, and insurance brokers, according to the filing. Since inception, Cango has server 734,336 car buyers.
