Ecommerce, Investments

China Based Wanda E-commerce Raises USD 161M at USD 3B Valuation


Alibaba’s competitor China-based Wanda E-commerce has raised a USD 161 million round of funding from two investment funds, Centec Networks and Xude Rendao, who will hold a 3 percent and 2 percent equity stake in Wanda E-commerce, respectively. This round valued the firm at about USD 3 billion.

The company will also initiate a second round of fundraising in the fourth quarter of 2015, when the company’s value will be further reassessed.

Wanda E-commerce was founded in August 2014, with a registered capital of USD 814 million after Wanda, Tencent and Baidu announced their partnership. Wanda Group holds a 70 percent stake in the venture, while Tencent and Baidu each control a 15 percent  stake. Following the investment, Wanda’s founder Wang Jianlin and Wanda commercial will each hold a 35 percent stake in Wanda E-commerce and will remain as a controlling shareholders in the company.

The company is trying to set up an efficient O2O (online-to-offline) business and is expected to be fully operational in the fourth quarter of 2015. It hopes to differentiate from Alibaba and by focusing on this O2O business model.

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To advance its e-commerce and finance related businesses, recently Wanda Group has also bought a stake in Alibaba’s Alipay’s competitor, 99Bill, an online payment company, for a deal amount of USD 322 million.

Image Source: Wanda Group

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