Baidu Waimai, Baidu’s food delivery subsidiary, completed its Series-B financing in Q1 2016 with an estimated total amount of USD 300 to 500 million, Tencent Tech reported on Friday.
Baidu confirmed in a teleconference that it had completed a new round of financing from Baidu and unnamed investors, and that Baidu Waimai was valued at USD 2.4 billion.
AllChinaTech reported its initiation of Series-B funding in December, 2015. According to its financing documents, 40% of the new investment will be spent on platform construction, 20% on product development, 20% on category expansion, and 20% on marketing.
Baidu’s food delivery services claimed it had penetrated nearly 90 main Chinese cities, targeting 75 million urban white collar workers. Up until now, its service has expanded from food delivery to the delivery of restaurant food, fresh fruits, medicine, and things from supermarket, convenience store, and the bakery.
Baidu Waimai is also a member of Baidu’s “aircraft carrier program”. This is the term Baidu used for its program of starting and supporting smaller subsidiaries, each with a more specific focus. Baidu started the program in 2015, opening more than ten subsidiaries up to investment and making them develop independently. In addition to Baidu Waimai, the program consists of 91 Desktop, Baidu Music, Baidu Video, and other subsidiaries.
(Top photo from Baidu Images)