Meituan-Dianping Confirms $3.3B New Financing Round

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.

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Nina Xiang
Nina Xiang is the co-founder and managing editor overseeing editorial content and product development at CMN. Before founding CMN in 2011, Nina worked at BusinessWeek magazine in Beijing and Institutional Investor magazine in New York, writing about business and financial services. While in New York, she also served as part-time correspondent for Shanghai's financial television channel, China Business Network, as well as China Radio International, China's national English-language radio network.