Chinese Internet giant Tencent Holdings Limited is to invest US$1 billion in the merged Meituan-Dianping entity, which is the largest on-demand local services provider in China, at a valuation of around US$20 billion, according to media reports.
In October, Shanghai-based Yelp-like review website Dianping.com and Beijing-based group discount platform Meituan.com agreed to merge.
The result is a company that takes around 80% of the group discount buying market in China.
Tencent is leading an investment round worth as much as US$3 billion for the new company, making it one of the world’s biggest fundraising deals for a start-up.
In September, Chinese ride share company Didi Kuaidi just closed a US$3 billion funding round at US$16 billion valuation from China Investment Corp, Ping An Insurance Company of China, and other investors.
Dianping.com previously received venture investments from Tencent, Sequoia Capital, Google, TBP Capital, Qiming Venture Partners, Lightspeed Venture Partners, and others.
Meituan received investments reportedly from Hillhouse Capital, Fidelity Management & Research Co., Alibaba Group Holdings Limited, General Atlantic, and others.