Cheche Technology to go public through merger with Prime Impact Acquisition I

Chinese auto insurance technology platform Cheche Technology will merge with Prime Impact Acquisition I, a special purpose acquisition company (SPAC), to become a publicly listed company.

The proposed merger represents a pre-money equity value of $760 million for Cheche Technology and is anticipated to bring in gross proceeds of around $68 million and additional financing for the auto insurance platform.

Cheche Technology anticipates to use proceeds from the deal to accelerate technology development and new market entry.

The combined entity, with an implied pro forma enterprise value of approximately $841 million, will be listed on Nasdaq and will continue to be led by Lei Zhang, Founder and CEO of Cheche Technology.

The Chinese insurtech company has developed and launched Sky Frontier and Digital Surge, two cloud-based SaaS solutions for insurance carriers and intermediaries.

Cheche Technology to go public through merger with Prime Impact Acquisition I. Image courtesy of Tumisu from Pixabay.

Established in 2014, Cheche Technology is licensed to distribute insurance policies across 24 provinces, autonomous regions, and municipalities in China with a nationwide network of around 110 branches.

Mark Long — Prime Impact Acquisition I Co-Founder, Co-CEO, and CFO said: “We have great respect for the platform that Lei and his technical team have built and the trusted relationships they have developed throughout the industry over the last eight years.

“We appreciate Lei’s strategy of leveraging their extensive insurance transaction platform to provide scalable SaaS and AI-enable analytic solutions to key stakeholders in the insurance ecosystem.

“We believe the Cheche Technology transaction platform and suite of SaaS solutions can deliver improvements in efficiency, pricing and risk management and create significant value for their partners, customers and stakeholders.”

Post-closing, Cheche Technology’s shareholders will retain a majority of the outstanding shares of the combined entity.

The Beijing-headquartered Cheche Technology assumes its unaudited annual revenue to be around $360 million for the year ended 31 December 2022.

The close of the merger is expected to complete in Q3 2023, subject to regulatory approvals and other customary closing conditions.