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 JD.com by focusing on this O2O business model.
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