SoftBank to invest $1.5 bn in Chinese used car platform

HONG KONG/BEIJING: The SoftBank-led Vision Fund is in talks to invest up to $1.5 billion in Chinese used car trading platform, two people with knowledge of the matter said.
That would mark the latest Chinese deal by the mammoth $100 billion investment fund as it looks to expand in the world’s No 2 economy, and would come after it invested 460 million euros in German used car dealing platform Auto1.
The fund is likely to invest up to $1.5 billion in Guazi in a deal that would value the firm at $8.5 billion before the investment, according to one of the sources, who had direct knowledge of the situation.
The two sources, who were not authorized to speak to media, also said the Vision Fund had in the past few months held talks with Guazi’s direct rival, Renrenche, which is backed by Chinese ride-hailing firm Didi Chuxing.
Guazi, a consumer-to-consumer used car trading platform founded in 2014, is backed by Chinese Internet giant Tencent and Sequoia Capital China. — Reuters