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Auto insurance firm Cheche Technology has been listed on the Nasdaq through a merger with special purpose acquisition company Prime Impact Acquisition I.
Founded by Lei Zhang in 2014, China-based Cheche focuses on property and casualty insurance, covering over 4,000 vehicle makes with around 100 insurance carriers.
The company said around US$1.6 billion in insurance policies were issued through its platform in 2021, which grew to roughly US$2.2 billion in 2022. Cheche Technology expects its unaudited annual revenue for last year to be about US$360 million.
The joint company was estimated to have an implied pro forma enterprise value of US$841 million at a price of US$10 per share. This results in gross proceeds of about US$68 million going to Cheche Technology, with room for additional financing. The China-based firm’s shareholders will hold a majority stake at the joint company.
Cheche Technology will use the funds to enter new markets, invest in growth across existing markets, and accelerate its tech development.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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