Zhuan Zhuan scores $200 million from Tencent
Chinese tech giant Tencent has signed an agreement to invest US$200 million in Zhuan Zhuan, a used goods trading platform on online marketplace 58.com.
As well as the cash, Tencent will add business resources for a minority equity ownership in the venture, to be known as Zhuan Zhuan Entities. This will incorporate the Zhuan Zhuan app, along with its listing channels Ganji.com and 58.com, which will continue its direct traffic and other business support.
In April 2015, 58.com agreed to acquire a 43 per cent stake in competitor Ganji.com’s parent in a cash-and-stock deal where it paid $412.2 million in cash and about 34 million newly issued ordinary shares. This transaction is expected to close in the next couple of months.
Zhuan Zhuan is a mobile app that enables transactions involving used goods. Sellers can upload pictures and a description of their goods. After the buyer has received their purchase, the platform transfers the money to the seller to ensure transaction safety.
“Thanks to our platform, trading used goods is becoming easier and can benefit everyone,” says Zhuan Zhuan CEO Wei Huang. “Since our launch in November 2015, we have been picking up tremendous momentum by continuously focussing on improving the user experience and developing a robust online ecosystem.”
Meanwhile, e-commerce conglomerate Alibaba Group’s online retail platform Taobao has launched a platform for used items, Xian Yu, which expedites about 200,000 sales a day.