Bitauto Holdings Limited has announced that it has led a consortium to raise funds for its subsidiary unit Yixin Capital, South China Morning Post reported.

The total investment raised is worth $550 million. The consortium group consists of Tencent Holdings Ltd, Baidu Inc, JD.com Inc. The three Chinese internet giants are strategic partners of Bitauto and have invested in the company in previous rounds of funding. Bitauto is listed on the American stock exchange, Nasdaq.   

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YiXin Capital runs an online platform for automotive financing, while its parent company offers internet content and online marketing service to automotive industry through its website bitauto.com.        

"With the strong support of our partners, Yixin Capital is well positioned for long-term success in China's online automotive financing industry," William Li, Bitauto's chairman and chief executive officer said.    

William added that Yixin Capital is an integral part of Bitauto's platform that seeks to create superior car purchasing experience for China's new and second-hand consumers.     

Bitauto will hold a 47 percent stake in Yixin Capital on a fully diluted basis, while the consortium group and other investors will hold remaining stake in the company. All the investors have agreed to explore additional capital injection in Yixin Capital as it continues to consolidate its market share.

Despite the ongoing economic slowdown, China's automotive finance industry has attracted interest from several tech giants.

Experts expect robust growth in China's automotive finance industry due to a sustained rise in auto sales in coming year.

TagsBitauto, Yixin Capital, Chinese Start Ups, Tencent Holdings, Baidu Inc., JD.com