(Yicai Global) June 3 -- Chinese online retail giant JD.Com is leading a USD500 million round of financing at Aihuishou, which offers a platform for electronic device owners to recycle or rent their wares to the highest bidders, as it plans to become more involved in the sector.

The move will make JD the largest shareholder in Shanghai-based Aihuishou, which translates to Love Recycling, tech news outlet 36Kr reported today. Aihuishou and JD's second-half trading platform Paipai will merge after the deal, the report added, with Paipai's General Manager Wang Yongliang becoming co-president of the newly formed company.

JD first invested in Aihuishou in August 2015, around five years after the target's founding, and has gradually been increasing its investment in the firm. Morningside Venture Capital, Tiger Fund and Tiantu Capital -- also all existing investors -- joined the latest funding round.

Aihuishou and Paipai, which is worth CNY5 billion (USD724 million) and was at one point almost sold by JD, will work together to build a comprehensive service platform covering all types of second-hand goods in future, the report added, citing Aihuishou founder and Chief Executive Chen Xuefeng.

Editor: James Boynton