Chinese platform Wanda E-commerce has raised around $161 million, pushing its valuation to about $3 billion. According to a report by TechCrunch, Wanda E-commerce hopes to position itself as a rival to Alibaba.
Investment funds Shengke Limited and Hong Kong Xu De Ren Dao E-commerce Investment Co., Ltd. participated in the round of funding. Shengke now holds a three percent equity stake in Wanda E-commerce, while Hong Kong Xu De Ren Dao holds two percent.
Founded in August, Wanda E-commerce is a joint venture by Wanda and Chinese Internet companies Tencent and Baidu. Tencent and Baidu hold 15 percent of Wanda E-commerce, respectively.
Wanda E-commerce plans to be fully operational in the fourth quarter of 2015. At that point it plans to initiate a second round of funding.
It focuses on an “online-to-offline business model” to differentiate itself from competitors Alibaba and JD.com, according to TechCrunch. Its advantage is that it has a significant number of brick-and-mortar retail businesses that already use its platform for their online services.
A report last month by China’s online payment service provider Alipay found that mobile transactions are driving the ecommerce market in China. Last year, mobile transactions made up 54 percent of all transactions in 2014.
UPDATE Jan. 6: The name of the investment funds has been corrected.