China Business News, 2/21/11
Wang Xing, CEO of Chinese group buy site Meituan.com, has revealed that the company is in talks to obtain second-round funding. Wu Bo, CEO of rival Lashou.com, said that third-round funding will be completed in Q1 2011. Speaking of late market entrant Didatuan.com, IDG partner Zhang Zhen said that Song Zhongjie's start-up will also seek a new round of strategic funds this year.
Wang added that in China group buy sites earn less than 10% commission on sales, compared to Groupon's 30-50%.
According to data provided by Lashou, the site earns approximately RMB 80 mln in monthly revenues, while rival Nuomi.com is estimated to take in approximately RMB 30 mln. Nuomi CEO Shen Boyang claims the two companies have more or less equivalent revenue, but declined to give precise figures.
Editor's Note: For more background on this topic, please see "Rumor: Lashou Obtains USD 500 Mln in Third-Round Funding" MD 2/09/11 and "Meituan Obtains Funding from Sequoia Capital" MD 12/02/10 issues.