Every now and then, deals like these are a reminder of the sheer size of the Chinese tech scene
Three weeks into 2016 and Chinese 020 powerhouse Meituan-Dianping may have already landed the largest investment of the year — unless somebody can top an unbelievable US$3.3 billion funding round.
A spokesperson told Reuters the company had indeed raised the money, confirming rumours that had been circulating in the tech community for about 24 hours.
No additional information has been provided to the media.
As a single entity, Meituan-Dianping is a relatively new company, having merged in October to form a company offering —amongst other services — restaurant reviews, deal services, food delivery, e-coupon promotions, restaurant reservations and e-payment solutions. The deal was reportedly worth US$15 billion.
The Meituan arm of the company is backed by Alibaba, but the Financial Times reported in November the e-commerce giant is looking to sell it’s US$1 billion stake in the company.
Dianping is backed Tencent Holdings which bought a 20 per cent stake in the company for an undisclosed amount.
Chinese media reported Meituan-Dianping is projected to become profitable in 2018.
Two companies that may not be thrilled about the news are a similar company called Nuomi and it’s majority stake holder, China’s Google-like search engine Baidu. Last June, Baidu pledged to invest more than US$3 billion into the company over the next three years. Nuomi began as a group buying company but has expanded beyond that service.
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