Benzinga | Apr 12, 2021 09:04AM EDT

Senmiao Technology Reports Framework Deal With Taoyun Capital

Senmiao Technology Limited ("Senmiao") (NASDAQ:AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced the signing of a strategic framework agreement with Taoyun Capital, a Beijing-based investment and asset management firm, whereby Senmiao has the right to utilize resources, including online ride-hailing platform licenses, obtained by Taoyun Capital and its affiliates in several cities across China, including but not limited to Beijing and Shanghai. Ride-hailing platforms in China are required to obtain a license for operation in each municipality.

According to the terms of the framework agreement, Senmiao and Taoyun Capital will collaborate in the development of online ride-hailing business, including but not limited to jointly developing systematic solutions for the management of vehicles, platform operation and carrying capacity, and jointly lobbying for favorable industry policies by local governments. By partnering with Taoyun Capital, Senmiao anticipates utilizing these resources to accelerate the expansion of its online ride-hailing platform into new cities.

Xi Wen, Senmiao's Chairman and Chief Executive Officer, stated, "We look forward to working with Taoyun Capital on expanding our respective businesses through this strategic collaboration. We are pleased to be able to partner with Taoyun Capital as we eye additional expansion opportunities for our online ride-hailing platform, which has seen much success since launching in our first city of Chengdu in October 2020. We remain focused on building market share in the increasingly larger metro areas of China while targeting a launch in the largest cities as we gain market share over time."