Tencent to Purchase Stake of a Review and Rating Website
Tencent Holdings considered that largest internet firm in China based on market value, took a minority stake in a local rating platform website in a planned bid to use its online dominance in the offline businesses. The investment will give Tencent a 20 percent stake in the Shanghai based dianping.com the most recognized review and rating website.
The partnership will underscore the company’s open platform strategy which collaborates with the vertical category leaders that will promote a better service using mobile devices. Mobile internet has changed local life dramatically, and having a online to offline market will help Tencent provide a better user experience and merchant service capability that will accelerate national expansion especially in third and fourth tiered cities.
Dianping was founded in 2003 and has position its business model as a mixture of Groupon and Yelp that offers restaurant reviews and group buying services across 2,300 cities in China. the company boasts of around 90 million monthly active users and is generating 30 million reviews by the end of 2013. In 2007 the firm went public once it has received a US$ 4 million in venture capital from Google and so far has garnered private equity that reached US$ 165 million.