Internet group Tencent has invested $100m in China-based community buying platform developer Xingsheng Youxuan at a valuation of roughly $5bn, Bloomberg has reported, citing people familiar with the matter.
Xingsheng Youxuan operates an e-commerce platform that enables users to band together with others in the same neighbourhood to buy goods in bulk.
The company is in discussions with other prospective investors including video streaming platform developer Kuaishou to raise additonal capital, the sources told Bloomberg.
Tencent’s investment comes weeks after e-commerce firm JD.com agreed to provide $700m for Xingsheng Youxuan, and seven months after Tencent, KKR, Sequoia Capital China, Capital Today, Tianyi Capital, Zhongding Capital and Huaxing New Economy Fund supplied a reported $800m in series C-plus funding.
The series C-plus round, which reportedly valued the company at $4bn post-money, took place in the wake of a $200m series B led by Primavera Capital and backed by Tencent, KKR, ZhenFund, GSR Ventures and Eastern Bell Capital in late 2019 at a reported $1bn valuation.
Xingsheng Youxuan had raised $40m from KKR in July 2019 at a $700m valuation, having secured an undisclosed amount from Tencent two months earlier. Capital Today, ZhenFund and Jinshajiang Venture Capital had already put up an eight-figure dollar amount of series A funding in 2018.
