Wang Xing, CEO of Chinese online ratings, group buy, and food O2O business Meituan-Dianping, recently revealed that the company plans to set up a new RMB 3 bln Meituan-Dianping Industry Fund, which will be led by Chen Shaohui, a senior vice president at Meituan-Dianping.
Chen previously served as an executive director of Tencent Industrial Capital, a venture capital fund set up by Chinese internet and mobile services firm Tencent (0700.HK). Chen joined Meituan-Dianping in 2014 to oversee strategic development and investments.
The Meituan-Dianping Industry Fund will have a target endowment of RMB 3 bln, the first tranche of which will be RMB 1.5 bln. Funds will be raised from Meituan-Dianping, existing Meituan-Dianping backer Tencent, Sichuan-based New Hope Group, and other funds. The Industry Fund will mainly focus on investment programs in the mass consumption sector to promote the development of local and offsite life services businesses. In terms of investment stages, the fund will focus on investment in consumer businesses that have not yet reached Series C funding. Projects may include both B2B and B2C enterprises, including restaurants, retail, hotel and travel, and leisure and entertainment local life services. In terms of investment amount, individual investments may range from RMB 30 mln up to RMB 100 mln.
The Meituan-Dianping Industry Fund has confirmed that Zhu Yonghua will serve as its first founding partner. Zhu was previously an executive director at Legend Holdings and a partner at Tiantu Capital. The Industry Fund has also set up a strategy and advising team led by Wang Xing, including Wang Huiwen and other members of Meituan-Dianping's core management team.