Meituan Dianping raised US$3.3 billion to set a global O2O financing record

After being the top two local life O2O platforms in China, merged into the largest O2O company in China in October last year, Meituan and Dianping announced the first round of financing after the merger. This financing not only set a record for the highest amount of private equity financing in China's Internet industry, but also became the largest O2O financing in the world.

After merging as the top two local life O2O platforms in China into China's largest O2O company in October last year, Meituan and Dianping announced on January 19 that they had completed the first round of financing after the merger of more than US$3.3 billion, and the valuation of the new company after the financing exceeded US$18 billion. This financing not only set a record for the highest amount of private equity financing in China's Internet industry, but also became the largest O2O financing in the world.

Insiders revealed that Wang Xing, CEO of Meituan-Dazhong Dianping, said at an internal communication meeting last weekend,"The integration of the new company is going smoothly, but because it is still in the process, we cannot be too happy and predict the future. The best way is to create it."

Before the merger, Meituan and Dianping had business divisions in hotels, movies, takeout and other fields. At present, NMI has completed the integration of its film business, marriage business, and advertising business. The user overlap between Meituan's Cat's Eye Movies and the Public Comment Movie Channel is less than 10%.

Insiders said that product technicians began to frequently shuttle between Beijing (Meituan headquarters) and Shanghai (Dianping headquarters). HR also made special suggestions for this. If you can take the high-speed train, take the high-speed train, and same-sex travel needs to stay in standard rooms in budget hotels.

The investors and valuation of this round of financing have not yet been announced, so it is impossible to know the share percentages of the two Internet giants Tencent and Alibaba as investors in previous rounds of financing after the completion of this round of financing.

Earlier, the Wall Street Journal quoted sources as saying that Alibaba is currently considering selling its stake in Meituan-Dianping. Alibaba holds approximately 7% of the combined company. In the new round of financing, Tencent invested another US$1 billion in Dianping.

Wang Xing, CEO of Meituan-Dazhong Dianping, said that "New American University" may not be an "Internet" company, but an "Internet +" company. Today, we must work together with all walks of life, eating, and entertainment to talk less about subversion and more about innovation.

"We will not and cannot subvert all walks of life services. We will not open restaurants or movie theaters ourselves. If we have to talk about subversion, we should think more about whether we will be subverted by others. For all walks of life, we should continue to strengthen end-to-end service capabilities from consumers to merchants through innovation, cooperate with all walks of life, cooperate with them to improve consumer experience, improve efficiency, save costs, and work with all walks of life together, make the cake bigger. Only in this way can we have value ourselves and we truly be an Internet +'company." Wang Xing said.

It is reported that this financing is led by Tencent, DST, and Zhixin Capital. Other participating investors include well-known domestic and foreign companies such as China Development Kaiyuan, Today Capital, Baillie Gifford, Temasek, and Canada Pension Fund Investment Company. Huaxing Capital serves as the financial advisor for the transaction. It is worth mentioning that Alibaba and Tencent were also present in the last few rounds of financing between the two companies. With Tencent's lead in the investment in the new company, industry insiders believe that this move may prompt Ali to make up his mind. Determined to buy shares and leave the market.

Editor: kong