Didi invests $200m in China's VC-backed Renrenche
Chinese ride-hailing app operator Didi Chuxing has invested $200 million in Renrenche, a local consumer-to-consumer used-car trading platform, which is backed by several VC investors.
Didi is the sole investor in the latest round. It comes one year after the company securing $150 million from the likes of Prometheus Capital, China Minsheng Investment, Tencent Holdings and Shunwei Capital Partners.
Following the deal, Renrenche will be able to leverage Didi’s large network comprising more than 400 million customers and 17 million drivers, Jian Li, Renrenche’s founder, said in a statement. They will cooperate on product development, innovation, and business operations. In the near future, Renrenche will also integrate its service into Didi’s mobile app, allowing Didi’s users to buy and sell used cars on the Renrenche platform.
Beijing-based Renrenche was founded in April in 2014. It seeks to replace used car dealers with an online platform through which buyers and sellers can negotiate transactions directly. It also provides auto maintenance and after-sales services, as well as automotive financing. It has formed partnerships with financial institutions to offer loans to car buyers.
According to AVCJ Research, Ceyuan Ventures, Shunwei Capital Partners and Redpoint Ventures jointly invested $25 million in Renrenche through two tranches in 2014. Tencent Holdings led an $85 million Series C round the following year.
Guazi and Uxin, Renrenche’s two main competitors, raised $400 million and $500 million, respectively, in their most recent rounds.
Didi has also received substantial backing from private markets investors. In April, the company received $5.5 billion - most of it from SoftBank - at a valuation of more than $50 billion. Didi has sought to broaden its transportation ecosystem through investments in its counterparts in Southeast Asia, India and the US as well as bike-sharing start-up Ofo.
China Renaissance served as the sole financial advisor for Didi's investment in Renrenche.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.