On-demand ride service Didi Chuxing has invested $200m in Renrenche, the China-based operator of an online used vehicle marketplace, South China Morning Post reported today.
Renrenche runs an automotive e-commerce platform that lists more than 100,000 vehicles across 80 Chinese cities. It has the third largest market share in China, behind rivals Guazi and Youxin, according to the Post.
The company intends to use the funds to expand, and will offer its services through Didi Chuxing’s app once the investment has closed.
Li Jian, Renrenche’s co-founder and CEO, said: “More than 400 million passengers and 17 million drivers are expected to be added to our customer base on the closing of the financing. This will bring us a huge edge in terms of resources.”
The Didi Chuxing funding increased the total raised by Renrenche to about $360m since it was founded in 2014.
Renrenche raised $150m from industrial park builder HanFor Holdings as well as China Minsheng Investment, which forms part of China Minsheng Bank, Prometheus Capital, Xinjun Capital, Redpoint Ventures, Shunwei Capital and Ceyuan Ventures in September 2016
Internet group Tencent had previously invested $85m in Renrenche in August 2015 at a $500m valuation, following on from earlier funding from Redpoint Ventures, Ceyuan Ventures and Shunwei Ventures.