Tencent is putting a stronger hold in Chinese e-commerce industry. Recently, it led a $250 worth investment on Mafengwo. The company is a content e-commerce focused on online travel agency and selling goods related to travelling. The investment put it on the top of the league.
Apart from Tencent Holdings Limited, Mafengwo rapid growth also attracts other investors. The other investors including General Atlantic, Qiming Venture Partners, Yuantai Evergreen Investment Partners, NM Strategic Focus Fund and eGarden Ventures.
Previously, the online travel agency got Temasek Holdings at its back. The Singapore-based venture led the previous fundraising together with General Atlantic. In its Series D, last December, Mafengwo raised $133 M.
What is Mafengwo?
Gang Chen and Gang Lv founded the company in 2010. And in 9 years, it had raised a total of $503 m from 5 funding rounds. Indeed, the company had grown rapidly big in the last four years.
Serving in China, the company exists in the world’s biggest tourist population. It’s continuing development in AI and algorithm technologies make it easier for tourist to plan a trip. More and more customers, most from Generation Z, started to use its service.
The biggest breakthrough was by making hotel bookings available from Mafengwo’s platform in 2015. Since then, its’ gross merchandise volume increases 100% per year.
Chen stated that the company will use the capital for further development on travel intelligence and efficiency. He wants Mafengwo create better travel experiences for consumers by offering more creative ideas and plans.
Last month, Cheng mentioned a “New 3C Travel Strategy”. The 3Cs includes Conent, leading Customer and sustainable Commercialization. It is within his vision to make his company a new one-stop travel service platform.
To attract younger customers, Mafengwo previously use young Chinese idol group to approach them. The company made a video content on ONER having a trip in New Zealand using its platform. The campaign put an increase of 9.7% Chinese travelers in 2018.
