Baidu Waimai, an online food ordering platform spun out of China-based internet company Baidu, is seeking to raise $200m in funding, Tencent Technology has reported.
The round is being raised in order to establish Baidu Waimai as a separate entity from its parent company. It will reportedly value the spin-out at $800m, though no potential investors have yet been disclosed.
Baidu Waimai, which was launched in May 2014, takes food or drinks orders from users’ smartphones before dispatching one of its workers to pick up and deliver the orders from local restaurants or cafes.
The unit has expanded its operations into more than 70 Chinese cities since its launch. Its main rivals in the Chinese online food delivery market include Ele.me, which raised $350m in January this year, and Daojia, which closed $50m in funding in September 2014.