China’s well-known secondhand-goods trading platform Zhuanzhuan, which is controlled by New York-listed local life service platform 58.com, has raised $300 million in its latest Series B financing round, an official release said Wednesday.
Several investors, including Chinese internet behemoth Tencent, have agreed to put up the funding, 58.com said. Tencent previously committed to pouring $200 million into Zhuanzhuan during the latter’s Series A funding in April 2017.
58.com said it will remain Zhuanzhuan’s controlling entity after the new financing is over. The transaction is slated for completion in the fourth quarter of this year.
It is unclear how Zhuanzhuan plans to use the capital.
Zhuanzhuan CEO Huang Wei struck a downbeat note in an open letter widely circulated on the Chinese internet Wednesday, saying he hoped the cash injection would help the company “survive” a challenging business cycle and intense competition. In 2017, Huang responded with excitement and optimism to Zhuanzhuan’s Series A funding.
Trading in secondhand goods is becoming more and more popular globally and China’s less developed areas hold a lot of industry potential, Huang added.
Contact reporter Zhao Runhua (firstname.lastname@example.org)