Nanjing, Jiangsu province-based Chinese travel and tour service provider Tuniu Corporation says it has signed an agreement to raise US$500 million investment from a group of investors led by e-commerce company JD.com Inc., according to a company announcement.
JD.com plans to invest US$350 million in the NASDAQ-listed company, including US$250 million in cash and US$100 million in resources and operational support.
This is JD.com’s second investment in Tuniu. In December 2014, JD.com teamed up with Chinese private equity firm Hony Capital and other investors to inject US$148 million in the tour service provider. JD.com ended up with a 6.5% stake in Tuniu after that investment.
Following the second round of investment from JD.com, Tuniu says the two parties will deepen their cooperation on all tour services, including online ticket booking, travel insurance, cruises, travel packages, and car rental.
JD.com will provide comprehensive operational support to Tuniu, including big data, financial services, online traffic, among others.
JD.com started its own online travel agency (OTA) platform in 2012 with the launch of online hotel booking services. The investment in Tuniu will help accelerate the e-commerce firm’s market expansion in a highly competitive sector.