News

Alibaba-Backed Discount Site Nabs $700M in Financing

The Alibaba-backed Chinese group-discount website Meituan.com is now worth $7 billion after it received $700 million from unidentified investors, CEO Wang Xing told Bloomberg.

The site’s transaction volumes hit $7.4 billion (46 billion yuan) last year, Xing said, and that number is expected to hit $16.1 billion (100 billion yuan) this year; by 2020 that figure is anticipate to hit $160.8 billion (1 trillion yuan.)

“We will focus on developing business areas where many people use frequently,” said Xing . That will include hotels, food-delivery and movie tickets. Wang told Bloomberg that Meituan is still planning its IPO, but said that wasn’t a focus for the company during the next year or two.

According to a report from Bain & Co., Chinese e-commerce spending is expected to hit $530.8 billion (3.3 trillion yuan) this year. China is estimated to have more than 630 million Web users. Meituan is a Beijing-based site that allows local-business search, including user-generated reviews. Coupons and group discounts are also offered on the site. Meituan has operations in 1,000 cities and roughly 20 million active daily mobile users and is part-owned by Alibaba. The company’s sales on the site hit $305.6 million (1.9 billion yuan) in 2014; 90 percent of those transactions are said to be done through its mobile app. It’s largest competitor is Dianping.com, the Tencent-backed site that is similar to Yelp.

——————————

LIVE PYMNTS ROUNDTABLE: MODERNIZING & SCALING FOR THE NEW NORMAL

The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

Click to comment

TRENDING RIGHT NOW