China-based electronics recycling service Aihuishou agreed a funding round sized at more than $500m today which will be led by e-commerce firm JD.com, China Money Network reported.
Tiger Global Management, Morningside Venture Capital, GenBridge Capital, Tiantu Capital and Fresh Capital also participated in the round.
Founded in 2011, Aihuishou operates a consumer-to-business platform that enables individuals to sell used electronics such as laptops and mobile phones through an online bidding process. Aihuishou then extracts rare materials from the devices and sells them back to manufacturers.
As part of its investment, JD.com will merge its own second-hand e-commerce platform, Paipai, with Aihuishou. JD will become the largest shareholder in Aihuishou through the transaction, which will value the merged business at more than $2.5bn.
Paipai general manager Wang Yongliang will become co-president of the merged company. Aihuishou and Paipai are expected to build a comprehensive online and offline offering for selling and recycling consumer electronics.
Aihuishou has raised $428m in funding to date, having received $150m in a series E round that was led by Tiger Global and backed by JD.com in July 2018.
Morningside and International Finance Corporation, the private sector investment arm of the World Bank, had participated in a $60m series C round for the company in 2015 together with JD.com and Tiantu Capital.
Cathay Capital and Fortune Venture Capital subsequently co-led Aihuishou’s $58m series D round in 2016 that also included Tiantu Capital, Morningside and several undisclosed, existing backers.
