Newly merged China-based reviews site Dianping and group buying service Meituan are looking to raise a $3bn round led by internet company Tencent, the Wall Street Journal reported today.
Tencent is said to be providing $1bn for the round, while the remaining investors have not yet been revealed. The funding round would value the company at $20bn.
Meituan and Dianping announced a $15bn merger last month but are yet to name the new company.
Dianping was founded in 2003 and operates an online local listings platform that includes features such as restaurant bookings and reviews, food delivery, group buying and online payment.
Dianping had raised more than $1.5bn ahead of the merger, including $850m in April 2015 from Tencent, smartphone maker Xiaomi, commercial property company Wanda, conglomerate Fosun, Singapore state-owned investment firm Temasek and FountainVest Partners.
Tencent reportedly also injected $500m in February 2014. Trust Bridge Partners, Sequoia Capital, Qiming Venture Partners and Lightspeed Venture Partners have also backed Dianping.
Meanwhile, Meituan was incorporated in 2010 and also enables users to reserve a table at a restaurant and provides services such as ordering food, buying cinema tickets and booking a hotel room.
Meituan had secured approximately $1.1bn before last month, most recently a $700m series D round in January 2015 reportedly backed by financial services conglomerate Fidelity Management and Research and Hillhouse Capital.
E-commerce group Alibaba contributed funds to a $300m series C round in May 2014, alongside General Atlantic and Sequoia Capital, as well as a $50m series B round in 2011, alongside Light Venture Capital, Walden International and Sequoia.