AVCJ

China travel site 17u raises $82m from Tencent, Boyu, Oriza

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Chinese online travel agency 17u.cn has received a RMB500 million ($82 million) round of investment from Tencent Holdings, Boyu Capital and Oriza Holdings.

The founders remain the controlling shareholders, local media reported. The company, which is targeting an IPO, will use the proceeds to expand domestic and outbound travel packages, as well as developing mobile services, said CEO Zhixiang Wu.

According to AVCJ Research, Oriza, formerly Suzhou Venture Capital, invested RMB20 million for a 17% stake in 17u in 2010.

In May 2012, the company received an undisclosed sum from Tencent, and shortly afterwards kicked off its IPO to list on the Growth Enterprise Board. The public offering plan was abandoned afterwards due to weak market conditions.

China's online tourism industry is on the rise, with domestic corporates and venture capital firms seeking investment opportunities.

Baidu agreed to pay $306 million for VC-backed booking site Qunar back 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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