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.
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.