Secondhand marketplace platform Zhuanzhuan Group completed a USD 100 million Series D1 financing round from investors including Xiaomi, Shunwei Capital, and Shangyu Capital, with Kaiyuan Capital as a financial advisor.
The latest funding builds upon the company’s USD 390 million Series C+ round, which closed in April. Some of the company’s previous investors include Tencent, 58.com, Shanghui Capital, and Qingyue Fund. The company also netted USD 45 million for its enterprise-facing business Caihuoxia in June.
Zhuanzhuan Group’s business model accepts used devices from individuals and provides quality assurance and inspection services. For example, the platform offers a one-year warranty for secondhand smartphones. The company’s marketplace had 8.72 million active buyers and 3.88 million active sellers in 2020, while revenue increased by more than 100% year-on-year in May 2021.
Xiaomi’s presence in the latest financing round is of great significance for the company, due to the consumer electronics giant’s outsized presence in smartphones and IoT products, according to Zhuanzhuan Group’s CEO Huang Wei. Xiaomi ranked third in global smartphone shipments in the first quarter of 2021, trailing only Apple and Samsung.
“We have been following the development of secondhand trading platforms for a long time and want to support outstanding companies in this field to meet the needs of different consumer groups by accelerating the secondhand product cycle,” said Li Jianbin, managing partner of Xiaomi’s strategic investment arm.
Another backer, Shanghui Capital, has a strong investment record in companies like Q&A platform Zhihu, Qutoutiao, and Monster Energy.
“Zhuanzhuan has established a complete ecosystem with a market-proven business model and has achieved an industry-leading monetization rate,” said Wang Xuxu, a partner at Shanghui Capital.
KrASIA Connection features translated and adapted content published by 36Kr. This article was originally written by Yang Yafei for 36Kr.