Home JD.com Brings Together its Secondhand Trading Platform Paipai with Aihuishou

JD.com Brings Together its Secondhand Trading Platform Paipai with Aihuishou

On Monday, JD.com announced their investment contract with Aihuishou an online trading platform for people who want to invest in forex, CFDs cryptocurrencies and other assets and also for day trading features. This report came through JD.com’s communication with the U.S Security and Exchange Commission.

JD.com intends to consolidate its Paipai business of secondhand products with Aihuishou. It would invest about $20 million in Aihuishou over the next five years. In return, Aihuishou would cede minor shares in the venture.

The merging of Paipai and Aihuishou eliminates the rumors about Paipai’s fate following months of speculation that JD.com was trying to get rid of Paipai. In the past, Zhuan Zhuan a Tencent-backed C2C disclosed that their attempt to purchase Paipai from JD.com was futile.

Paipai started out as forex and binary options investment site before it was acquired by JD.com from Tencent in 2014. By the close of 2015, traders were unable to post their listings on the site since JD.com was troubled about copycats on the website. This contributed to the site being closed by April 2016, however it was back to business again in 2017.

On Tuesday, JD.com communicated to KrASIA press that it would give a $500 million loan to Aihuishou. The funds will be in line with the strategic hook-up deal. Besides, more investors declared their interest to fund the business. Such investors include Genbridge Capital, Tiger Fund, Morningside Venture Capital, and Tiantu Capital.

JD.com also mentioned that it was planning to be the most significant Aihuishou strategic shareholder, but did not disclose its stake in the business platform.

Paipai’s general manager will act as Aihuishou co-president once the two merge. However, JD.com failed to give more information concerning the nature of operations between Paipai and Aihushou. This was in regard to whether the two will be operating separately or as an integrated entity on the platform.