China's Ctrip invests $200m in VC-backed Tongcheng

Ctrip is now the company's second-largest shareholder after management.

Tongcheng previously received RMB500 million ($82 million) from Tencent Holdings, Boyu Capital and Oriza Holdings, in February specifically for its 17u.com platform.

Prior to that, it received an undisclosed sum from Tencent Collaboration Fund in May 2012, shortly before listing on China's Growth Enterprise Board. The company's first round of funding came in early 2010 when Oriza - then called Suzhou Ventures - put in $2.9 million.

"Ctrip is the clear leader in the online and mobile travel industry inChina," said Zhixiang Wu, CEO of Tong Chengm in a statement. "This investment will enhance the strategic cooperation between the two companies and will ultimately benefit our customers and partners,"

China's online tourism industry has proven popular with domestic corporates and venture capital firms.

Baidu agreed to pay $306 million for VC-backed booking site Qunar in 2011 and took the company public last year, while Alibaba Group invested in travel app ZLS365 and information site Qyer to complement its existing offering, Taobao Travel. Tencent invested $84.4 million in eLong, taking a 16% stake in 2012.

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• Topics
• Greater China
• Technology
• Early-stage
• Consumer
• China
• Venture
• Tencent
• Boyu Capital
• TMT
• Consumer