Renren, which began as the Chinese answer to the United States Facebook, is taking advantage of the market and looking at what they need to do in order to succeed. With this being said, Renren is not only considered a Chinese social media platform, but is looking to diversify their holdings in the market. Recently, the company invested into logistics with a trucking deal. They are looking at other forms of investments as well.
The first quarter financials for the company showed a 41% loss compared to the previous year at this time. They had an operating loss of $26.5 million.
These stats indicated to Renren it was time to find new venues in the business world
What Happened to Renren?
Though Renren is still considered decently popular, the new social media platforms on the market started to push Renren out of the picture. For example, WeChat now dominates the market that Renren once dominated. User wise, Renren has 195 million users. However, compare this to other sites like WeChat who boasts 468 million users or Tencent QQ that has 830 million users, it was clear to Renren it was time to branch out.
The company has started to invest in various and diverse businesses, including many United States business startups. Thus far, Renren has spent around $500 million in venture capital in over 30 deals. Of this figure, around $275 million has been invested into the area of fintech space. Namely, the company has been talking about their investment into SoFi, a platform geared at college student and graduates. Renren has a 25% stake in the company and the company is set to go public this year at what many are estimating to be at a $3.5 billion value.
Within the United States, Renren has invested $5 million into Sindeo, a mortgage marketplace that is based out of California. In addition, the company invested Motif, a stock trading site.
Renren is making a smart decision through expanding their business. Otherwise, the company could find itself without any other option besides shutting down.