Goldman Sachs to lead $300m round for Chinese used car platform Renrenche

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Goldman Sachs is set to lead a $300 million funding round for second-hand car trading platform Renrenche, according to a report by South China Morning Post.

Renrenche is a classified site that allows car owners to sell directly to other consumers. Founded in 2014, the startup covers over 100 cities in China.

The platform’s two top existing investors Chinese ride-hailing app operator Didi Chuxing and internet giant Tencent are also expected to join the round.

Tencent is one of the startup’s earlier backers, while Didi Chuxing came with a $200 million investment in September last year, after the Beijing-based company raised a $150 million series D financing round joined by Prometheus Capital and China Minsheng Investment.

Didi Chuxing recently followed up its investment with a strategic partnership which offers comprehensive solutions for vehicle supply and maintenance services. This year, Didi’s after-sales unit plans to set up car maintenance stores across the country where Renrenche users will be supported as well.

As of July 2017, around 18,000 cars traded hands on Renrenche’s platform, with cumulative turnover of more than 200,000 units traded on its platform since its establishment in 2014.

The latest round of funding will allow the company to hire additional people and invest in new technology to raise the entry barrier for the car sales business, the SCMP report said, citing a Renrenche statement.

The investment brings Renrenche’s total funding to $750 million, as it continues to make its mark in an increasingly competitive market.

In November, Chinese e-commerce giant Alibaba led a $335 million funding round in Souche.com. Other used car trading platforms Uxin Group and Guazi.com have also raised $500 million and $250 million, respectively, last year.

Over the last few years in China, the sale of second-hand cars have picked up together with the sale of new cars. Last year, 12.4 million used cars were sold in the country, up 19.3 per cent year on year, according to the China Automobile Dealers Association.

It is believed that this trend has been helped by supportive policies from China’s authorities such as the easing of rules on auto loans and as the internet and popularity of e-commerce combined to allow shoppers to compare prices.

Also Read:

Didi Chuxing invests $200m in Chinese used car platform Renrenche

China’s used car financing startup Meiliche secures $92m led by New Hope Group

Majority global insurers to ramp up PE investments, reports Goldman Sachs

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.