Alibaba Invests In Parenting Portal And E-commerce Platform Babytree At Unicorn Value

China’s largest retailer Alibaba Group Holding Ltd has made a strategic investment to acquire 10% stake in Chinese pregnancy and parenting online portal and e-commerce platform Babytree Inc., valuing the later at RMB14 billion (US$2.19 billion), according to Chinese media reports citing insiders.

Alibaba did not immediately confirm the deal to China Money Network.

One week ago, Chinese online retailer of beauty products Jumei (NYSE:JMEI) announced in a statement that it entered into a definitive agreement to sell 4% of stakes of BabyTree for about US$86.5 million to a third-party investor. The transaction gives Babytree a valuation of US$2.16 billion.

Founded in 2007, Babytree claims to be one of China’s largest pregnancy and parenting web portal, similar to Parents share their parenting diaries online and engage with other users through a question-and-answer forum. Babytree also develops its own early education products.

Alibaba and BabyTree will cooperate in e-commerce, marketing, sponsored contents and new retail. Alibaba will provide operation, technology, logistics and other integrated e-commerce solutions to Babytree, according to the media report.

In 2016, BabyTree raised a RMB3 billion (US$450 million) funding round led by Fosun Group and participated by TAL Education Group, Matrix Partners, Chenshan Capital, China Merchants Wealth.

Alibaba has expanded its investments in vertical e-commerce players. In April, Alibaba announced to invest RMB4.5 billion (US$717.2 million) in Huitongda Network Co., an e-commerce platform serving rural consumers, in a bid to expand its sales outside major cities.