Alibaba Group Holding Ltd., with corporate headquarters in Hangzhou, China, in the province of Zhejiang, has invested in Huishoubao, a Shenzhen, China-based cellphone recycling firm.
According to China Money Network, which cites an unnamed Chinese media source, Huishoubao plans to use the funding to invest in technology, after-market layout and organizational capacity building. It also will expand its cooperation with Xian Yu, a used goods marketplace and social network created by Alibaba’s Taobao brand.
Huishoubao, which was founded in 2014, recycles mobile phones, iPads and other digital devices through O2O (online-to-offline) channels that include a website, Wechat account and other partnerships, China Money Network says. The company also partners with mobile phone manufacturers and three major telecom operators in China to promote its recycling business.
Huishoubao raised a RMB300 million ($44 million) series B round from Strait Capital Investment Group, with offices in Shanghai and in Taipei, Taiwan, in 2017, China Money Network reports. Prior to that, in 2016, the company raised a series A+ round from SMC Capital, Shanghai, and a series A round from Chengwei Capital, Shanghai, and CITIC Capital, with offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo and New York. Source Code Capital, Beijing, provided an angel investment in 2015, according to China Money Network.
Citing data from the Chinese Ministry of Industry and Information Technology, China Money Network says the market scale for secondhand mobile phones in China is RMB1 trillion ($146 billion).