Phoenix Science and technology news Beijing time on October 18th, according to foreign media reports, informed sources said Alibaba group is planning to raise about $1 billion to finance the expansion of its local service platform reputation. This round of financing may be close to $8 billion valuation of word of mouth.

 

customers in the use of Alipay

payment

informed sources said that the new round of financing will introduce outside investors to determine the benchmark for the word of mouth. At present in the room the reputation of the fierce competition in the field of O2O operation, so far most of the operating funds from the financial and Ali affiliates ant payment service. External financing may make the word of mouth become more independent, and ultimately independent entities listed.

current financing terms have not yet finalized. With the deepening of negotiations with potential investors, Ali, trading terms may change. Informed sources said Ali has hired Credit Suisse Group to contact a few well-known international investors, these investors have established a close relationship with ali.

Chinese Internet giant seeks to expand their share in the O2O market. Ali was originally the largest investor in China’s O2O group network, but after the conflict with the founder of the United States Mission Network founder Wang holdings of shares held. U.S. mission network and then decided to merge with the public comment on the opponent, which received Ali rival Tencent Holdings investment.

when the word of mouth on the line in June last year, Ali and ants in a total of nearly $1 billion to invest in word of mouth, respectively, gained a reputation of 50% equity. The two companies also followed the popular application ordering hungry to invest a total of $1 billion 250 million.

word of mouth initially focused on food and beverage distribution, but now by allowing businesses to build a virtual store on its platform to expand the business to other O2O services. Although not yet profitable, but the rapid growth of word of mouth. Ali ended in June first quarter earnings report, Alipay reputation through the payment service processing ant’s payment of $5 billion, an increase of 48%. Ali said that the first quarter share reputation losses amounted to $37 million.

many start-up companies through high discounts and subsidies to attract users, but the company Ali and Tencent and other financial strength, related services, map data and payment platform, also provides the advantage for them with small, independent competitors.