Alibaba will reportedly invest $1.25 billion in Ele.me, a food delivery service based in Shanghai, says financial news site Caixin (link via Google Translate). The deal would Alibaba the startup’s biggest shareholder, with a 27.7 percent stake.
According to Crunchbase, Ele.me has raised about $1.09 billion dollars. Its list of investors is noteworthy because it includes Alibaba rivals Tencent and JD.com. Ele.me’s largest round, a $630 million Series F, was announced in August.
If the deal goes through, it strengthens Alibaba’s O2O strategy. O2O, which can stand for online-to-offline or offline-to-online, is shorthand for the business of convincing e-commerce customers to spend money at offline businesses or, on the other hand, getting customers who usually shop in brick-and-mortar stores to make online purchases.
Alibaba’s other O2O investments include its affiliate Alipay, China’s largest mobile payments platform, electronics retail chain Suning, and taxi app Didi Kuaidi.
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