Reuters was informed by reliable sources that the nascent online services of Alibaba Group have increased in value. The online services of Alibaba were established on demand and have now reached a worth of $30 billion. The company has recently raised funds of $4 billion.
Alibaba added the food delivery services by combining with Ele.me and Koubei which is an online restaurant guide business. This was done in October under a single team of management and holding vehicle.
The announcement for the plan fund raising for this vehicle was made this August.
In April, Alibaba had a deal in which it bought the shares which it did not own already, the value of the company Ele.me was at $9.5 billion.
According to a list of Unicorns published by a unit under the science and technology ministry of China in the March of this year, at the end of last year, Koubei was worth $8 billion.
The people said that Alibaba itself financed more than $3 biilion of its new funds along with Soft Bank’s Vision Fund. The people also said that Primavera Capital Group and Alibaba Affiliate Ant Financial have joined in the fundraising. The two have also invested together in Koubei.
As was added by the source, the company is expecting to close the financing round in the late November. Ant Financial along with Soft Bank and Alibaba declined the request to comment whereas Primavera did not respond to the request of commenting immediately.
The e-commerce deal Ant Financial owned 43 percent stake in the business before the deal in April. Its name is translated roughly to mean “Hungry?”Ele.me acquired Baidu Inc’s former business of food delivery almost a year ago.
Koubei which was founded as joint venture of 50-50 by Alibaba and Ant Financial had its inception in 2015.
Source: Reuters, WallStreetReporter
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