China's ride-hailing firm Didi Chuxing has injected $200 million into the latest financing round of secondhand-car trading company Renrenche to support its expansion.
"Renrenche will leverage Didi's resources of more than 400 million users and 17 million drivers," said Li Jian, founder and CEO of Renrenche, the third-largest used-car trading platform in China. "We will further accelerate the expansion and improve customer experience, aiming to establish the largest car trading service platform in China."
The two companies will jointly collaborate on product, technology, operation and business planning, Renrenche said in a statement yesterday.
In future, users of Didi are expected to use car trading services provided by Renrenche on Didi's platform, the statement said.
Guazi.com, China's largest used-car trading site by sales, said in June that it had secured a new round of financing worth $400 million, while Youxin, the second-largest, closed a $500 million funding series in January.
China's secondhand-car market is expected to transact over 20 million secondhand cars a year by 2020, doubled the number in 2016, the China Automobile Dealers Association said.
The country's secondhand-vehicle sales were 5.83 million units in the first half of this year, up 21.5 percent year on year, data from the association showed.