Diversified internet company Tencent has provided $85m in series C capital for China-based online automotive marketplace Renrenche at a $500m valuation, Technode reported today.
Founded in April 2014, Renrenche operates an online marketplace for used vehicles, taking a 3% commission fee on each sale made through the service.
The company currently operates in 20 Chinese cities and lists around 15,000 vehicles. It was launched by former employees of internet services provider Baidu, and the company was in talks with Baidu over series C funding before opting for Tencent.
Explaining the choice, Renrenche CEO Li Jian told Technode: “We believed that what Tencent can offer us would be much bigger; not only in funding but in potential resources like mobile traffic, social interaction and internet funding from [Tencent-funded commercial bank] WeBank.
Renrenche initially launched its service in three cities in July 2014, fueled with $5m of series A cash secured from venture capital firm Redpoint Ventures in April.
Redpoint, Ceyuan Ventures and Shunwei Ventures supplied a further $20m for the company at a $150m valuation in September.