Beijing-based Mafengwo is reported to be closing its latest round of financing led by Tencent, and the company is to reach a post-money valuation of USD 2 billion, according to 36Kr citing multiple sources.
It was said that the fundraising started three months ago, and Cygnus Capital was the advisor.
“The financing is basically closed, except that a sales and purchase agreement is yet to be finalized”, said an informed source. Mafengwo declined to comment in response to 36Kr’s request for confirmation.
Another source told 36Kr that the market capitalization of Mafengwo was likely to reach up to USD 2 billion, which is within the ballpark of USD 2-2.5 billion projected two months ago.
However, Mafengwo has been plagued by accusations of fake reviews on the platform just when it was striving to complete the financing round.
Mr. Zhuo Yu, Vice President of Mafengwo, dismissed any impact and stated that the incident would not get in the way of the company’s operation and the company is on course to IPO in the next two to three years.