Tuhu was founded in 2011 as a supplier to the car maintenance sector, with a focus on tyres and parts. It then built an internet platform that allowed drivers to book car maintenance and servicing with third parties, offering a standardised process with more transparent pricing to consumers.
Tuhu’s pitch to investors is based on its growth as an auto maintenance and services platform, where it benefits from high margins. As of September last it was reporting nearly 73 million registered users for its maintenance app, with 10 million monthly active users. The majority of its revenues still comes from sales of tyres and other car parts, however, where margins are much lower.
Tuhu is still pre-profit, reporting a loss of more than Rmb900 million for its 2021 financial year. It has completed 16 rounds of financing since 2013, raising more than Rmb9 billion from leading names such as Tencent and Sequoia China. It filed for an IPO in Hong Kong earlier this year.
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