SoftBank's Vision Fund to invest $1.5 bln in Chinese car sales start-up

SoftBank's Vision Fund has agreed to invest $1.5 billion in China's leading used car platform, Chehaoduo Group, media reports said.

The firm runs Guazi, a mobile app that matches buyers and sellers of secondhand cars, and Maoduo, a website selling and leasing new cars.

The company intends to use the money to develop technology in data and cloud computing, it said in a statement.

Chehaoduo currently manages 600 showrooms and provides aftersales services.

According to data compiled by Argaam, in October 2016, Saudi Arabia’s Public Investment Fund (PIF) and SoftBank Group signed a memorandum of understanding to set up the technology fund.

SoftBank has injected $25 billion in SoftBank Vision Fund, while PIF has pledged to invest $45 billion over five years.