Sohu IT, 6/14/11
Chinese internet giant Tencent (0700.HK), according to one source close to the company, has made an eight-figure USD strategic investment in vertical B2C diamonds e-commerce site Kela Diamonds (Kela.cn).
The source said the investment had been completed, and that Tencent now holds a significant stake in the company. This has also been confirmed by a Tencent employee party to the transaction.
Prior to this investment, Tencent was in talks with Chinese diamond e-commerce site Zbird.com and other diamond B2C sites with the intention of making an acquisition, however no deal was reached at the time.
Kela Diamonds CEO Guo Feng said that no information can be made public at this time.
In 2008, Kela Diamonds announced that it had obtained more than USD 3 mln in venture capital led by a US-listed firm. Due to a confidentiality agreement signed by both sides, however, Guo is unable to reveal the name of the investor, which is rumored to be Chinese multi-platform marketing company Acorn International (NYSE: ATV).