Renrenche was among China’s hottest technology unicorns endorsed by investors such as Goldman Sachs Group Inc. and Tencent Holdings Ltd.. The automobile site could sell itself to get a bit more than 1,000.
The Beijing-based startup–that had a pre-money evaluation of $1.4 billion at a funding round only a couple of decades ago–includes a preliminary strategy to market its important assets into 58. Com Inc. to get HK$10,000 ($1,290), according to individuals knowledgeable about the issue. China’s online classified advertising pioneer will consider Renrenche’s Hong Kong thing, while supplying $4 million in loans for the southern operations, said the individuals, asking not to be identified as the trade is confidential. The celebrations have yet to finalize the deal and might not move with this, the public said.
An agent for Renrenche failed to comment but said the contents of the emailed query delivered to the business was incorrect, without doubt.
The deal might help bail out the automobile trading system, which conducted {} problems involving the unraveling of China’s once-booming sharing market. Launched in 2014, Renrenche joins users trying to trade secondhand vehicles, requiring a smaller reduction than offline traders. Its backers include ride-hailing giant Didi Chuxing, in addition to venture companies like Shunwei Capital and Redpoint China. In 2018, it completed a $300 million investment round led by Goldman Sachs, as demonstrated by a firm statement.
But rivalry with rivals such as Uxin Ltd. and also Softbank Vision Fund-endorsed Guazi.com–combined with business disruptions throughout the COVID-19 pandemic–rapidly dried up financing for Renrenche.
That request may reevaluate the trade using 58. com. The deal has been rejected by several investors but gained crucial support from Tencent and Didi through a shareholder meeting a week, as stated by the people. Investors are still considering other alternatives to solve Renrenche’s liquidity crisis,” said the individuals.
Renrenche’s representative was reacting to an email that contained questions about the HK$10,000 provide by 58. Com in addition to the loans, which the bargain had won funding from Tencent and Didi. The agent did not define what was incorrect. 58. Com did not react to requests for comment, although spokespeople in Tencent and Didi failed to comment.
In the event the firesale goes, it could indicate one of the spectacular startup failures because China’s net boom kicked off ten years back. Renrenche’s fast fall echoed high profile failures when mini-bubbles surfaced, such as Mobike or Ofo at bike-sharing, however, people who have been rarities given continuing expansion in {} adoption.
58. Com, frequently billed as China’s response to Craigslist, additionally counts Tencent one of its backers. In Junethe internet classified portal consented to some buyout bargain at roughly a 8.7 billion worth, linking a ton of Chinese companies to ditch their U.S listings.
