NASDAQ-listed Chinese online travel platform Ctrip.com International, Ltd. says that the company has agreed to invest US$200 million in venture-backed Tongcheng Network Technology Share Co., Ltd. for an undisclosed stake, according to an announcement made by Ctrip.com.
Upon the completion of the deal, Ctrip will become Tongcheng’s second largest shareholder after Tongcheng’s management team.
"We are increasingly positive about the potential of the travel industry in China," says James Liang, chairman and CEO of Ctrip. "LY.com is the leading player in the local attraction ticket segment and we will support the independent operation of LY.com."
In 2008, Cowin Venture Capital invested an undisclosed amount in Suzhou City-based Tongcheng. China’s Internet service giant Tencent Holdings Limited invested an undisclosed amount in 2012. It’s unclear which rounds of financing they were.
Established in 2006, Cowin Venture manages RMB1 billion (US$160 million). Cowin Venture is a member enterprise of Suzhou-based investment holding company Oriza Holdings.
Founded in 2004, Tongcheng provides travel related services and bookings in China.
(Correction: an earlier version only listed Cowin Venture as Tongcheng’s investor)