Meituan Completed a New Round $4 Billion Financing and Its Valuation Reached $30 Billion

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On October 19, Meituan, China’s largest Internet + life service platform, announced that it had completed a new round of financing worth $4 billion and its valuation is expected to reach $30 billion.

This financing is led by Tencent and introduced a new strategic investor, The Priceline Group. Other major investors are renowned institutions at home and abroad, namely, Sequoia Capital, Government of Singapore Investment Corp.(GIC), Canada Pension Plan Investment Board, Trustbridge Partners, Tiger Global Management, Coatue Management and China – UAE Investment Cooperation Fund.

“After this round of financing, Meituan ushered in a completely new stage,” said Meituan CEO Wang Xing, “Adhering to enterprise mission of ‘better cuisine and life for all’, Meituan will assume more social responsibility, offer more jobs and build itself to be a more open, more cooperative and socially coordinated enterprise.”

So far, Meituan take-out directly has created more than 500000 jobs on the distribution side. Among these delivery men, 31% worked in traditional industries and 10% come from poor areas. The cumulative number of delivery workers reached 3 million.

After this round of financing, Meituan will increase investment in R&D of artificial intelligence, unmanned delivery and other cutting-edge technologies, so as to further promote the upgrading of modern service industry.

Tencent President Martin Lau said, “We are very pleased to continuously be Meituan’s shareholders and important strategic partner. During past development, Meituan has deeply influenced and changed the catering and life services industries. Its leading advantage and scale development provide consumers with quality and convenient services, and contribute to China’s Internet ecosystem and diverse development.”

The Priceline Group becomes a new investor and reaches important strategic cooperation with Meituan. Todd, the senior VP of Priceline Group, said, “China’s Internet development attracts world attention. In the field of life services, Meituan grows rapidly. We share great potential for cooperation. In the future, we will work together to develop outbound tourism markets in China and the world as a whole.”

Public information shows that Meituan provide quality services for 280 million active users and 5 million active merchants. In fields like catering, take-out, hotels, travel, movies, beauty, paternity, leisure entertainment and marriage, Meituan enjoys a leading market position. Meituan continuously empower traditional industry through technology and innovation and has profoundly influenced and changed public living lifestyle.

Financing history

  • 2010-03-04

Meituan was established and gained seed investment from angel investor Wang Jiang.

  • 2010-08-05

Meituan received $12 million A-round investment from Sequoia Capital.

  • 2014-05-15

Receive $300-million in C round financing from Pan-Atlantic Capital, Sequoia Capital and Alibaba and its valuation reached $4 billion.

  • 2015-01-18

Meituan completed $700-million D round financing its valuation reached $7 billion.

  • 2015-09-11

New round financing of $1.5 billion to $2 billion and its valuation reached $10 billion.

  • 2015-10-08

Meituan merged with Dianping.com.

  • 2016-01-19

Meituan completed $3.3-billion financing and its valuation exceeded $18 billion.

This article originally appeared in Tencent Technology and was translated by Pandaily.
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