NGP leads $10m round for China online food ordering platform

According to AVCJ Research, Unity Ventures, KPCB and Zhenfund invested an undisclosed sum in the company two years ago.

Meican, which launched in 2011, provides food ordering services for about 30,000 restaurants in major Chinese cities, including Beijing and Shanghai. The company pulls in about RMB1 million (US$160,000) in monthly revenue. It takes commissions from restaurants on each transaction.

Meican will use the fresh capital for recruitment and improving products and services.

Online food ordering is a classic online-to-offline (O2O) business, which has a great potential to grow, said David Tang, a partner at NGP who will join the Meican board. The investment is in line with NGP's emphasis on mobile and navigation system development.

Similar venture capital investments include Etaoshi, which received approximately $10 million led by Highland Capital Partners; and Daojia, which received funding from existing backer Morningside Ventures and B2C e-commerce site JD.com in September; and Ele.me, which received a $25 million round led by Sequoia Capital China.

Chinese strategic investors are also moving into this space. Last month, Tencent Holdings paid an undisclosed sum for a 20% stake in Dianping, a VC-backed online listings provider best known as one of China's most popular sites for restaurant reviews. The company provides group-buying, e-membership and restaurant reservation services, as well as several other online-to-offline services.

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• Topics
• Greater China
• Consumer
• Venture
• China
• TMT
• Consumer
• Venture
• KPCB China Management