Former Chinese Tech Unicorn Could Now Sell For Just Over $1,000
- 58.com seeks to take over Renrenche amid threat of bankruptcy
- Tencent, Didi-backed car dealer valued at $1.4 billion in 2018
Renrenche was one of China’s hottest tech unicorns backed by investors including Goldman Sachs Group Inc. and Tencent Holdings Ltd. Now the car website could sell itself for a little over $1,000.
The Beijing-based startup -- which had a pre-money valuation of $1.4 billion in a financing round just two years ago -- has a preliminary plan to sell its major assets to 58.com Inc. for HK$10,000 ($1,290), according to people familiar with the matter. China’s online classified ad leader will take over Renrenche’s Hong Kong entity, while offering at least $4 million in loans to its mainland operations, said the people, asking not to be identified because the transaction is private. The parties have yet to finalize the deal and may not proceed with it, the people said.