E-commerce company Rakuten acquired a minority stake in China-based flash sale e-commerce company Fanli yesterday in a deal that valued Fanli at $1bn.
Although the precise sum invested by Rakuten has not been disclosed, the companies said the stake it took was sized at “less than 10%.”
Fanli operates an online store with cashback and flash promotion sales of branded products. In conjunction with the series C investment, Rakuten will use its experience of operating similar online stores, Ebates and Extrabux, both of which are available in China, to help grow Fanli.
Rakuten acquired Ebates last year, while Extrabux claims to be the largest cashback e-commerce company in the US.
Fanli raised $20m in a May 2014 series B round backed by SIG China, a local investment subsidiary of financial services provider Susquehanna International Group.
Steamboat Ventures, a corporate venturing subsidiary of entertainment conglomerate Walt Disney Company, and venture capital firm Qiming Venture Partners provided a $10m series A round for the company in 2011.
Gary Ge, chief executive of Fanli, said: “Rakuten is a genuine e-commerce pioneer with significant global experience and we look forward to working with Rakuten as we bring our vision to consumers across China and around the world.”