Meituan-Dianping Raises $4bn in Latest Funding Round
Meituan-Dianping on Thursday announced that it has accomplished to raise $4 billion in a funding round led by Tencent Holding Ltd, along with other participants. The funding valued China’s largest on-demand services provider at $30 billion.
This move is believed to be a part of its strategy to take on the country’s largest e-commerce firms in offline retail.
Among other participants were Sequoia Capital Ltd, GIC Pte Ltd, which is a Singaporean sovereign wealth fund, and Tiger Global Management LLC. The Priceline Group is a new investor that was included in the funding round.
“Meituan-Dianping is leading a major transformation of China’s traditional services industry by creating a powerful new e-commerce ecosystem that covers customers’ whole day lifestyle scenarios. We pride ourselves on being a global pioneer that is creating one-stop service offerings under a unified platform. Customers are able to access various types of services, from restaurant reservations to on-demand delivery, hotel and travel bookings, and entertainment, all through a single mobile application. The strong support from a number of innovative and strategic global investors in this financing round is strong validation of our business model and strategy,” said Wang Xing, chief executive officer of the company.
According to Xing, numerous parts of their “diversified business” are still on the early stages of growth, making the opportunities for further expansion “enormous.” He also added that they are anticipating wise investment decisions in order to build their platform and offerings. This is also aimed to fully leverage AI-based and analytics-driven technology, adding that the efforts are for the benefit of our consumers and merchant partners.
Its four business groups, which are In-Store Dining, Lifestyle & Entertainment, On-Demand Delivery, and Travel & Leisure, are already in the market-leading positions. However, the firm claims that it will further strengthen these businesses using the latest funding.
Earlier this year, it has been reportedly pouring money in offline services and artificial intelligence technology. Meanwhile other tech companies in China are also now pushing into brick-and-mortar retail.
Tencent has been a long-time partner for Meituan-Dianping, and is believed to continue doing so to expand its business.
“We are glad to continue providing Meituan-Dianping with both strategic and financial support as it fulfills its vision of transforming China’s food and lifestyle services industry. The company is executing smoothly and at scale across multiple categories, is providing convenience and value to consumers, and is contributing to a healthy and diversified China Internet ecosystem,” said Martin Lau, Tencent’s president.
Meanwhile, Todd Henrich, who is the Head of Corporate Development of the The Priceline Group, said that his company is “excited to support Meituan-Dianping” and that the relationship between the Agoda.com and Meituan-Dianping will help each to benefit from their expertise.
In a press release, Xing concluded the announcement by writing, “We are very grateful for the confidence that both our long-standing and new investors have in Meituan-Dianping and we look forward to working together to further build on our many important successes to date.”
In July, Meituan-Dianping’s vice president said that they were not yet thinking of an initial public offering, at least not until the firm established infrastructure for services.
Meituan-Dianping stated that it has 280 million users and serves as a platform that serves roughly 5 million businesses.
You must be armed to the teeth with the best and most useful knowledge in trading. Visit Bworld Review to turn yourself into a sharper and wiser investor!