Rakuten invests in VC-backed China discount site Fanli

The deal comes nearly a year after SIG China committed $20 million to the start-up in a Series B round. Prior to that it raised $10 million from Qiming Venture Partners and Steamboat Ventures in 2011.

Fanli was founded in 2006 and claims to be China's largest online rebate and rebate-based flash sales company. It currently has more than 70 million registered users and covers numerous e-commerce platforms including Alibaba Group's Tmall and Taobao, JD.com, Dangdang and travel site Ctrip. The start-up is estimated to facilitate over RMB1 billion ($161 million) in sales a month.

According to a release, Kevin H. Johnson, CEO of Ebates, Rakuten's coupon and discounts subsidiary, will join Fanli's board of directors.

"This investment in Fanli reflects Rakuten and Ebates' ongoing interest in the rapidly evolving Chinese market," said Johnson. "As the market continues to mature we believe consumers will demand world-class shopping experiences. Rakuten and Ebates hope to support Fanli's vision of fulfilling this role and exploring potential collaborations in China and abroad."

Rakuten is an active VC investor both in Asia and globally, however its penetration in China has been limited. The last deal on record was back in 2011, when the firm took part in a $50 million round for Chinese online tour package provider Tuniu.

Prior to that it formed an e-commerce joint venture with search firm Baidu in 2010 - Lekutian - but the business was closed down two years later amid intense competition from local players. Rakuten's earliest investment in China was the acquisition of a 21% stake in Ctrip in 2004.

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