The amount of the investment is not disclosed, but Tencent will hold a 20% stake of Dianping after the deal.
The founding team of Dianping, including CEO Zhang Tao, will continue to hold a controlling stake of the company, which will maintain independent operations.
The deal will allow Dianping to integrate its information on businesses, consumer reviews, group-buying deals, online restaurant reservation services to Tencent’s Wechat app and its instant messenger QQ.
Tencent’s Wechat app will provide mobile payment functions to give Chinese urban consumers integrated information and services.
Founded in 2003, Dianping received US$2 million series A funding from Sequoia Capital in 2006. It received US$25 million series B from Google and Sequoia Capital the next year.
In 2011, Sequoia Capital, TBP Capital, Qiming Venture Partners and Lightspeed Venture Partners made a US$100 million series C investment in Dianping. Its series D round of US$64 million was completed in 2012 from investors including Sequoia Capital.
(Update: Tencent’s investment is reported to be over US$400 million, according to media reports)