Date
24 November 2017
Priceline Group has contributed US$450 million in a new funding round for Beijing-based Meituan-Dianping. Photo: Bloomberg
Priceline Group has contributed US$450 million in a new funding round for Beijing-based Meituan-Dianping. Photo: Bloomberg

Tencent, Priceline in US$4 bln Meituan-Dianping funding round

Chinese lifestyle-services internet platform Meituan-Dianping has raised US$4 billion from an investor group led by Tencent Holdings, the Wall Street Journal reports.

In the deal that pinned a valuation of US$30 billion for the Beijing-based firm, US-based Priceline Group was a participant, contributing US$450 million, the report said, citing a regulatory filing.

Existing investors such as Sequoia Capital, Singapore sovereign-wealth fund GIC, the Canada Pension Plan Investment Board and others also participated in the fundraising.

Meituan-Dianping raised US$3.3 billion in a previous funding round last year.

Founded in 2015 through a merger between two large internet firms, Meituan.com and Dianping Holdings, Meituan-Dianping runs an app similar to Yelp in the US, matching consumers with entertainment and other services such as restaurants, hairdressers, and food delivery. 

Meituan-Dianping now has a higher valuation than US peers such as SpaceX and WeWork.

The Chinese company, which operates in 2,800 cities and has 5 million merchants listed on its app, plans to use the money it raised to expand into existing areas of dining, on-demand delivery, travel, and entertainment, the report said.

It also plans to use some of the money to invest in new technologies.

Meituan-Dianping’s biggest rival is Koubei, an Alibaba-backed platform which earlier this year said it had raised US$1.1 billion from investors.

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RC

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