(Yicai Global) April 19 -- Internet giant Tencent Holdings Ltd. [HKG:0700] will invest USD200 million in Zhuanzhuan, 58.Com Inc.'s [NYSE:WUBA] second-hand trading platform in a move that is likely to spur competition between Tencent and Alibaba Group Holding Ltd. [NYSE:BABA].
58.Com said yesterday that it will continue to hold a majority stake of Zhuanzhuan, which will remain focused on growing the second-hand market.
Xianyu, one of Zhuanzhuan's key rivals, has leveraged its affiliation with Taobao, Alibaba's online marketplace, to expand beyond used item trading into areas including renting and knowledge sharing.
Zhuanzhuan was established in November 2015 and is focused on electronics.
Tencent was the largest shareholder of 58.Com Inc. as of Nov. 22, 2016.