ByteDance is reportedly raising up to $600m (4.25bn yuan) for its car information and trading platform Dongchedi.
ByteDance is a Chinese internet technology company headquartered in Haidian, Beijing and incorporated in the Cayman Islands.
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Founded in 2012, ByteDance developed TikTok and Douyin.
Key investors in the funding round include General Atlantic, HongShan, KKR & Co. and Gaorong Ventures.
The business has been valued at close to $3bn ahead of the fundraising, according to sources, who have chosen to remain anonymous.
ByteDance is the parent of social media colossus TikTok, and initiated a plan to separate Dongchedi from the business less than a year ago.
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By GlobalDataDongchedi, formerly known as the automobile channel of TouTiao, was incubated by ByteDance’s commercialisation department, with its independent app lauching in 2017.
It offers an automotive media and community application “dedicated to providing users with professional automotive information, reviews, quotes, and other services”, according to its website.
Dongchedi competes with peers such as Autohome and Bitauto Holdings.
The Dongchedi app shares the same user traffic pool as Douyin, the version of TikTok used in China.
Also known as DCar, the company has around 35.7 million monthly active users on the application, according to a Quest Mobile report released in June of this year.
ByteDance is said to have been reviewing its businesses to focus on long-term growth areas after a bill was passed in the US ordering the sale of TikTok, leaving the company under pressure.
The company has also reduced its gaming division to avoid a clash with Tencent Holdings and has considered selling Shanghai Moonton Technology Co., a studio it acquired for $4bn in 2021, Bloomberg reports.
ByteDance and Gaorong have yet to comment on the matter.
Representatives for General Atlantic, KKR and HongShan, formerly Sequoia Capital China, declined to provide comment to Reuters journalists.
