Deals | Tencent Leads China’s Fastest-Growing E-commerce Startup Pinduoduo’s $3 Billion Round, Upping Rivalry with Alibaba’s Taobao

The startup was valued at $15 billion.

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Deals | Tencent Leads China’s Fastest-Growing E-commerce Startup Pinduoduo’s $3 Billion Round, Upping Rivalry with Alibaba’s Taobao

China’s fastest growing e-commerce startup Pinduoduo has recently closed a new round of financing worth around $ 3 billion led by Tencent, with participation from Sequoia Capital, China’s biztech media 36Kr, KrASIA’s parent, reported on Wednesday. The startup was valued at $15 billion.

Tencent previously invested in the startup in July 2016. The company’s existing investors include IDG Capital, Shunwei Capital, Xiaomi.

Leveraging on WeChat’s mini program and social networking network, Pinduoduo, founded in 2014 in Shanghai by HUANG Zheng, saw its GMV surge to over 100 billion yuan (approx. $ 15.9 billion) by end 2017, which took China’s e-commerce giant Taobao and JD.com 5 and 10 years to reach the value respectively.

Pinduoduo is the 2nd most popular shopping app in terms of monthly active users, only trailing behind the Taobao app, according to Cheetah Mobile’s apps analytics service. JD is in 3rd.

Pinduoduo offers its customers, most of which live in tier 3 and lower cities in China, a wide range of products at steep discounts.

About three weeks ago, Taobao just launched a discount app dubbed Taobao Tejia to fend off Pinduoduo.

Read more: Taobao Launches Discounts App to Fend off Intimidating Rival Pinduoduo