The merged Meituan-Dianping entity, the largest on-demand local services provider in China, has raised over US$3.3 billion in a new financing round at a post-money valuation of US$18 billion, according to a company announcement (in Chinese).
The fundraising is the largest for a Chinese start-up, beating previous record holder Chinese ride share firm Didi Kuaidi’s US$3 billion financing round last September.
Tencent Holdings Ltd., DST Global and TBP Capital led the round, with participation from Chinese private equity firm Capital Today, CDB Kai Yuan Capital Management, Ltd., Baillie Gifford, Temasek Holdings Private Ltd. and Canada Pension Plan Investment Board.
"China’s O2O (online-to-offline) sector is in its initial development stage, and has a great future," says Wang Xing, the new company’s chief executive.
Meituan-Dianpin is now the dominant leader in China’s local services sector, with daily orders reaching 10 million and actively monthly active users of its mobile app hitting 150 million.
In 2015, the company recorded total transaction value of RMB170 billion (US$26 billion), says the statement.