Deals
Alibaba Said to Invest in Tencent's Chinese Food Startup
- Alibaba said to control Ele.me after $1.25 billion round
- Funding said to value food-delivery service at $4.5 billion
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China’s Ele.me, a food-delivery startup backed by Tencent Holdings Ltd., plans to close a funding round of at least $1.25 billion by as early as mid-February in a deal led by competitor Alibaba Group Holding Ltd., according to people with direct knowledge of the matter.
Alibaba will be Ele.me’s controlling shareholder after the funding, which values the service at about $4.5 billion, the people said, asking not to be identified because the information is private. The deal could be announced by the Lunar New Year holiday that starts Feb. 8, one of the people said. Ele.me was in merger talks with group-buying site Meituan.com, but those fell apart, the people said.