Upcoming Chinese E-commerce company Wanda has raised a further $161 million in its latest funding round. The company is now valued at a massive $3 billion. Investment firms Centec Networks and Xude Rendeo have invested in the company.
Wanda E-commerce was founded not very long ago. It’s a joint venture between Wanda and Chinese internet firms Tencent and Baidu. It started off with an initial investment of $814 million. Wanda is a massive conglomerate in China and it’s holdings include hotels, real estate, movie theatres, hospitals and shopping malls. Tencent and Baidu are the biggest internet players in China.
Wanda E-commerce recently stated that it expects to be fully operational in the fourth quarter of this year. It plans to initiate another round of funding around that time. Centec Networks holds around 15 percent of Wanda e-commerce. Ten Cent and Baidu hold 15% each. Wanda E-commerce uses Tencent products like Tenpay and Weixin payments, both of which are rivals to Alibaba’s online payment platform, Alipay. This joint venture will further help Tencent in its quest to capitalise on the e-commerce potential of We Chat, which is the most popular messaging app in China.
Wanda E-commerce hopes to become Alibaba’s main rival in the Chinese market by distinguishing itself with the help of focussing on an online to offline business model. Wanda hopes that it will be able to reach six billion customers by 2020. up from the 1.5 million it has right now.