Softbank Reportedly In Talks To Invest $1.5 Billion In Chinese Used Car Platform Guazi
|DST Global founder Yuri Milner. DST Global is an investor in Guazi, which has raised nearly $2 billion according to data from Crunchbase.
Photograph by Stuart Isett/Fortune Brainstorm Tech
The Softbank Vision Fund is in discussions to invest up to $1.5 billion in Chinese used car trading platform Guazi.com, that would value the company at $8.5 billion, Financial Times reports. It says a deal may be announced within the next few weeks. Such deal would mark the second time Softbank has backed a used car platform, with the Japan based company having invested €460 million in Germany’s Auto1 last year at a €2.9billion valuation.
Guazi, which is run as a subsidiary of Chinese internet company 58.com, operates a peer-to-peer platform that pairs car buyers with car sellers in China’s large automobile market. The company has already raised $1.9 billion in funding according to Crunchbase data, from investors including Yunfeng Capital, DST Global, IDG Capital, Sequoia Capital and Tencent.
|Softbank CEO Masayoshi Son (right) and former PepsiCo CEO Indra Nooyi at the 2017 Bloomberg Global Business Forum.
image : Mike Bloomberg on Flickr
Reuters reports that the Vision Fund has in the past few months, also held discussions with Guazi’s rival, Renrenche, a company with $760 million in funding according to Crunchbase, raised from investors including Tencent, Redpoint, Goldman Sachs and Didi Chuxing.
Softbank is also reported to be leading a $200 million+ round for storage-on-demand service Clutter. Other of its bets include Getaround, Brandless, Light, Nvidia, PolicyBaazar, Grab, Moviebook, View, Mangbang, DoorDash, Ola Cabs, Improbable, Slack and Zymergen.