Sources said on Thursday, Alibaba Group and its affiliated company ant gold service, plans to take the lead on the online take-off ordering platform hungry what investment of at least 1 billion US dollars of funds.
It is reported that from Alibaba Group and ants gold clothing investment, the estimated value of $ 5.5 billion to $ 6 billion. Alibaba Group currently coveted Tencent support for the start-up company US group comment on the dominant dominance in the market. As more and more Chinese consumers begin to use smart phones to order meals and make home services, the market size of such services is expected to reach RMB2.28 billion (US $ 1.1 trillion) this year.
Hungry to get a big investment, indicating that despite China's economic downturn, but the flow of venture capital remained strong in the country. CB Insights, a market research firm, expects China's start-up capital to surpass 40 percent to $ 6 billion in the first quarter of this year.
Although the meal service is struggling to achieve profitability on a global basis, Alibaba Group and Tencent, one of China's largest Internet companies, see on-demand services as one of the means to promote money-making online payment services. Alibaba Group has been hungry what the second largest shareholder, the group also has a restaurant to provide services such as the reputation of the network.
Today, Tencent is also prepared to increase investment to catch up with competitors. After getting hung in April 2016 Alibaba Group and the ant gold service $ 1.25 billion investment, Tencent held by the hungry stake has been diluted. At that time, hungry what the valuation of about 4.5 billion US dollars. The source had previously revealed that hungry had to negotiate with the US group on the merger, but ultimately failed to take place.
Up to now, hungry, Alibaba Group and ants gold clothes are not reported on this report.