China’s ride-hailing app operator Didi Chuxing has tapped into the used car business by injecting $200 million into a Beijing-based second-hand car trading platform Renrenche, according to media reports
Along with the investment, the third largest used-car trading platform will also benefit from accessing Didi’s huge network of customers and selling through Didi’s apps, potentially reaching more than 15 million drivers including taxi drivers, Uber drivers and designated drivers.
Renrenche is backed by internet giant Tencent and venture capital firms including Shunwei Capital. It raised a $150 million series D financing round joined by Prometheus Capital and China Minsheng Investment last September.
Meanwhile, its competitors including Uxin Group, Guazi.com and Souche.com have also raised $500 million, $250 million and $180 million, respectively, this year.
Li Jian, co-founder and CEO of Renrenche told local media that demand for used cars is higher than supply. Therefore, the strategic partnership with Didi will give it a huge edge in terms of resources.
The latest funding will be used to speed up its strategic expansion. Renrenche currently operates in over 80 cities across China and has more than 100,000 used cars on its platform.