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https://scmp.com/comment/blogs/article/1072340/tencents-groupnet-group-buying-consolidator
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Tencent's GroupNet: a group buying consolidator

GroupNet's role as consolidator in China's group buying space could grow, backed by its strong ties to Tencent and following its raising of $40 million in new funds for acquisitions.

GroupNet's role as consolidator in China's group buying space could grow, backed by its strong ties to Tencent and following its raising of $40 million in new funds for acquisitions. Photo: Reuters

The long awaited clean-up of China's cluttered group buying sector appears to be accelerating, with new reports that a potential cash-rich consolidator has emerged in the form of GroupNet, which is itself the product of the merger earlier this year between former mid-sized players FTuan and Gaopeng. The new reports say that GroupNet has raised $40 million in new funds, which it will use to acquire other companies in the money-losing space where many players are now on life-support after burning through hundreds of millions investors' dollars over the last two years.

Industry watchers will recall that another mid-sized site called 24Quan shuttered its operations early last week amid a dispute between its managers and investors, with a message on the site claiming the closure was "temporary" until the impasse could be resolved. Reports emerged later in the week quoting GroupNet's CEO Lin Ning saying he had been approached by one of 24Quan's investors about buying the company, and that he was in talks about a possible acquisition.