HONG KONG — Two offshore Internet investment funds have paid a combined RMB1 billion ($163 million) for stakes in Wanda E-Commerce.
Dalian Wanda, which launched Wanda E-Commerce in August in a partnership with Tencent and Baidu, said that Shengke Limited and Hong Kong Xu De Ren Dao E-Commerce Investment, will hold 3% and 2% stakes respectively. The implied valuation of RMB 20 billion is four times greater than at launch.
Tencent and Baidu each hold 15% stakes. Wanda’s majority stake is to be held equally by chairman Wang Jianlin and Wanda Commercial Properties with 35% each.
The startup company is intended to be “the world’s largest [online to offline] e-commerce company, a mission statement that puts it in direct competition with Alibaba, the dominant player in China which floated on the New York Stock Exchange in September.
Wanda said that the company will be fully operational by the fourth quarter of 2015, at which time it will initiate a second round of fundraising and “the company’s value will be further reassessed.”
Wanda controls the AMC cinema chain in North America and Wanda Cinema Line, the largest, privately sector cinema chain in China, which is soon to be floated on a stock market in China. It is currently building film studios and a festival center in Qingdao on China’s East coast.