IAC’s Match.com invests in Chinese dating website
IAC-owned Match.com has purchased a 20% stake in Chinese dating website Zhenai Inc. Details of the transaction have not been disclosed.
It represents one of few strategic expansions into China's online dating market, which has already drawn interest from venture capitalists. Zhenai itself has received backing from Bridger Capital, MC Capital and SEAVI Advent.
Zhenai emerged from 96333.com, a free dating site created in 1998. Seven years later it was acquired by Li Song, an investment banker-turned serial entrepreneur, and restricted as an online and telephone-based matchmaking service. Roger Chen, formerly an executive at Dell China, joined in 2006 as co-founder and general manager.
Zhenai claimed to have 28 million registered users as of May 2011 - Chinese speakers, predominantly in the 25-45 age group, based in 14 countries and regions. It is said that the company is able to command premium subscription rates due to its staff of 1,000 professional matchmakers who man call centers to provide advice and consultation to subscribers throughout the dating process.
"Given the rapid growth in China's online personals market, we felt that Zhenai was the best opportunity for Match.com to further expand our global footprint by partnering with a local market leader," said Greg Blatt, CEO of IAC, in a statement.
Cowen Latitude acted as the exclusive financial advisor to Zhenai on the transaction.
NASDAQ-listed IAC operates more than 50 diversified internet businesses across 30 countries. Match.com, which launched in 1995, runs subscription-based online dating sites in 25 countries and in eight languages.
Zhenai's rival dating website Baihe.com has received venture backing from Mayfield Fund, NEA, GSR Ventures and NorthernLight. SAIF is said to have invested $12.5 million in ACT Technology, the parent company of Marry5.com.
Apart from Match.com's investment in Zhenai, the sole strategic investment appears to be the acquisition of Yeeyoo by Meetic, a leading European dating website, for $20 million in 2006.
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