Rumor: Mogujie Seeks Third-Round Funding
Sohu IT, 8/27/12
Chinese shopping experience sharing SNS Mogujie has reportedly begun a third-round of funding based on a valuation of nearly USD 200 mln led by IDG. According to industry sources, Mogujie directed traffic generating RMB 180 mln in transactions for Chinese B2C and C2C e-commerce site Taobao in May, receiving RMB 6 mln in revenue share from Taobao Alliance's Taoke promotional service. After Taobao and Alipay cracked down on unauthorized links by Taobao merchants to group buy deals on Mogujie, transactions and revenue share fell to RMB 90 mln and RMB 3 mln respectively in June. While Mogujie has yet to make any official announcement, industry experts believe the scandal likely had a negative impact on IDG's plans to invest.
Editor's Note: A spokesperson for Mogujie confirmed the company is conducting a third round of funding, but declined to provide any details, and would not comment on rumors of a nearly USD 200 mln valuation. For more background on this topic, please see "Taobao, Alipay Staff in Mogujie Bribery Probe" MD 8/17/12 issue.
Keywords: e-commerce Taobao Internet funding scandal valuation Alipay B2C C2C revenue share third-round Taoke Mogujie Taobao Alliance ad union transaction volume group buying
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