Home > > Meituan-Dianping raise US$2.8 billion in financing

Meituan-Dianping raise US$2.8 billion in financing

12/23/2015| 9:29:03 PM| ChinaTravelNews 中文

Meituan-Dianping has already raised US$2.8 billion in financing as of mid-December this year through the issuance of Class B shares.

The recently merged Meituan-Dianping, now named China Internet Plus (CIP) Holding, has already raised US$2.8 billion in financing as of mid-December this year through the issuance of Class B shares. The share issue is aimed to raise a total of US$3 billion equivalent to 16.67% of the company’s total equity after the offering. The share issue will inflate the company’s valuation to US$18 billion from the current US$15 billion.

Dianping's CEO Zhang Tao (left) and Meituan's CEO Wang Xing (right)

Already committed for the financing round are one billion US dollars from a Chinese internet giant, US$350 million from DST, US$150 million from Sequoia Capital and US$1.3 billion from CICC and Capital Today. Sources revealed that CIP will continue to receive funding and the total amount will likely exceed US$3 billion.

After Meituan and Dianping merged, the newly formed company CIP became China’s largest O2O lifestyle platform that controls over 80% of the market, turning over RMB184.8 billion in gross merchandise volume (GMV) in 2015. The turnover is forecast to exceed over a trillion yuan by 2019. 

Meituan and Dianping will maintain independent operations within a year with no integration, except for coordination in offering subsidies.

Dianping will focus on low-frequency and high-value businesses like bridal and exhibition services. It will refrain from engaging in competitive pricing or subsidies in high-frequency low-priced segments. On the other hand, Meituan will take charge of high-frequency services like dining.   

CIP is gearing up to go public in two or three years, and by then the company’s investors can take the opportunity to cash in on their investments.(Translation by David)

TAGS: Meituan | Dianping | CIP | IPO
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