Tencent Holdings Ltd. has agreed to invest US$200 million in Zhuan Zhuan, a used goods trading platform operated under 58.com Inc., China’s largest classified ads site.
Under the agreement, a new entity named Zhuan Zhuan Entities will be created, into which 58.com will inject the Zhuan Zhuan app, plus its used goods related listing channels 58.com and Ganji.com, a Chinese classifieds website acquired by 58.com in 2015.
Meanwhile, Tencent will invest US$200 million in cash and additional business resources into the new business group in return for a minority equity ownership stake.
The transaction is currently expected to close in the second quarter of 2017, according to a company announcement.
Founded in 2015, Zhuan Zhuan is a mobile app enabling second-hand goods transactions among its users. It allows sellers to upload pictures and a description of the used goods. After the item is sold and the buyer has received the item, the platform transfers the money to the seller to ensure transaction safety.
Zhuan Zhuan’s biggest rivals include Xianyu, Alibaba Group’s digital flea market. Recently, JD.com Inc. also established its own online used goods platform, called JD Youpin, allowing users to sell secondhand mobile-phones, tablets and laptops.
Two months earlier, another used good trading platform Liequ raised a RMB100 million (US$14 million) round from Shenzhen-based asset management firm HRX Asset.