RenRen will now own a 10 per cent minority stake in GoGoVan, read the same report.
The funds will be used to bring GoGoVan into China, even though the company told StartupsHK that it has not decided which city it will be launching in first.
Additionally, Steven Lam, Co-founder, GoGoVan, said that the investment was more strategic than financial; RenRen would be a great partner should GoGoVan enter the Chinese market with its app.
For background, GoGoVan is a year-old company that has launched its services in home country Hong Kong, followed by Singapore and Taiwan. It has plans to head into Sydney, Melbourne and Seoul by end-2014. To date, it has more than 74,000 registered drivers and more than 500,000 user downloads on its platform.
In terms of financing, the startup first closed a Series A round of US$6.5 million led by Centurion Investment Management, with participation from a number of unnamed Singapore-based angle investors.