Cheche Technology is an auto insurance technology platform that offers a range of services and products for digital insurance transactions and insurance software as a service solutions in China


Prime Impact Acquisition I to take Cheche Technology public in $841m deal. (Credit: Gerd Altmann from Pixabay)

Cheche Technology, a Chinese auto insurance technology platform, has agreed to merge with Prime Impact Acquisition I, a special purpose acquisition company (SPAC), in a deal that values the combined entity at an implied pro forma enterprise value of about $841m.

The implied pro forma enterprise value of the combined company is at a price of $10 per share, assuming no further redemptions by the SPAC’s shareholders.

Cheche Technology provides a range of services and products for digital insurance transactions and insurance software as a service (SaaS) solutions in China.

The deal with Prime Impact Acquisition I will enable the auto insurance technology firm to go public and trade on the Nasdaq stock market.

Through the deal, the Chinese firm expects to receive gross proceeds of nearly $68m and the scope for additional funding.

Following the closing of the deal, the insurtech’s shareholders are expected to maintain a majority of the shares of the combined entity.

The proceeds from the transaction will help the auto insurance technology platform to expedite technology development and entry into new markets as well as continue investing in its business growth across existing markets.

Cheche Technology has introduced two cloud-based SaaS solutions for insurance carriers and intermediaries, namely Sky Frontier and Digital Surge.

The company claims to have enabled a wide range of auto insurance transactions involving more than 4,000 vehicle makes with about 100 insurance carriers, 400 third-party platforms, and 820,000 referral partners in its network.

Cheche Technology founder and CEO Lei Zhang said: “It is our great pleasure to have found Mark and the Prime Impact team last year. We have since engaged in deep discussions on the growth and development trajectories our company should take and believe the seasoned, resourceful Prime Impact team can help us get to the next levels.

“With extensive experience in capital markets, mergers and acquisitions, particularly with a focus on data and technology centric businesses as well as a profound understanding of the Asian markets, Mark and his colleagues check all of the boxes of the great partners we have been looking for on a long-term basis.”

The deal, which is subject to approval by the SPAC’s shareholders and Cheche Technology’s shareholders alongside other customary conditions, is anticipated to close in Q3 2023.