Suning acquires VC-backed group buying site Manzuo

Manzuo will complement Suning's existing group buying service, the company said in a statement on its microblogging site Weibo.

According to AVCJ Research, KPCB committed $10 million in Manzuo in 2010. The site received a $50 million Series B round of funding from KPCB, J.P. Morgan Venture Capital Investment and other undisclosed VC firms the following year.

China's group buying industry has undergone massive consolidation as operators with little product differentiation or brand loyalty squeezed profit margins ever further in the battle for market share.

The number of sites shrank to 213 in January, from 281 in September last year, Tuan800.com noted in an industry research report. The turnover of group buying industry slipped 67.7% year-on-year to RMB35.88 billion ($6 billion) in 2013.

Suning is keen to develop its online business. In October last year, Hony Capital and Suning - also one of the PE firm's portfolio companies - bought a controlling interest in Chinese online TV provider PPTV for $420 million. The deal, which values PPTV at approximately $568 million, created an exit opportunity for the company's existing VC backers.

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• Topics
• Greater China
• Venture
• Exits
• Technology
• China
• KPCB China Management
• Trade sale
• M&A
• Exit
• TMT