(Yicai Global) April 18 -- Tencent Holdings Ltd. [HKG:0700] has agreed to invest USD200 million in Zhuanzhuan, 58.Com Inc.'s [NYSE:WUBA] second-hand trading platform, 58.Com said today.
The Shenzhen- and Chaoyang-based companies will gradually open up their resources to each other to promote Zhuanzhuan's development. 58.Com will continue to hold a majority stake of Zhuanzhuan.
The second-hand market in China, where smartphones are popular, is in its early stages and has potential to grow as public acceptance improves, said Yao Jinbo, 58.Com's chief executive. "We also hope that with the support of Tencent, Zhuanzhuan can more quickly and effectively seize the opportunity to develop the market."
China's second-hand market development has just started, said Zhuanzhuan CEO Huang Wei. After Tencent's injection, Zhuanzhuan will continue to promote second-hand goods and energy flow to provide new value for users and the market, Huang said.
Zhuanzhuan was established in November 2015.