China’s Baidu buys VC-backed Brazilian online discount site
Chinese search giant Baidu has bought a controlling stake in Brazil-based Peixe Urbano, an online discount platform that has received several rounds of VC funding, for an undisclosed sum.
Baidu will bring access to capital and expertise, but Peixe Urbano will be run as an independent entity within the Chinese company's corporate ecosystem. The existing management team, led by co-founder and CEO Julio Vasconcellos, will remain in place.
Baidu launched operations in Brazil in November 2013, introducing a Portuguese-language version of its Hao123, which aggregates links for useful websites in specific regions. CEO Robin Li said on a visit to the country in July that Baidu would invest more than BRL120 million ($50 million) in Brazil over the next three years. The company also plans to set up a R&D facility in the country - its seventh globally.
"International expansion is a priority for Baidu and Brazil is a key part of this strategy, with more than 50 million people already using our services every day. The acquisition of Peixe Urbano, one of the best known and respected companies in Brazil's internet industry, demonstrates our commitment to investing in the long-term development of the market," Johnson Hu, general manager of global business at Baidu, said in a statement.
Consultancy A.T. Kearney estimates that e-commerce in Brazil will see average annual growth of 18% through 2016.
Founded in 2010, Peixe Urbano is Brazil's largest e-commerce company, claiming 20 million users and 30,000 merchant partners. It has sold more than 30 million discount vouches since inception. In addition to adding product verticals, Peixe Urbano is developing its offering in terms of mobile technology, location-based services and customized services.
According to CrunchBase, Peixe Urbano received three rounds of institutional funding in 2011. Benchmark and Monashees Capital provided the Series A, while the Series B and C rounds were led by General Atlantic and Tiger Global Management and then T. Rowe Price and Morgan Stanley.
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