Zhenai receives backing from Match.com

Last week, Match.com's owner IAC/InterActiveCorp purchased a 20% stake in Zhenai, which claims to be one of the largest providers of integrated internet and telephone matchmaking services to Chinese-speaking singles. Details of the transaction were not disclosed, but in taking its stake, IAC joined VCs Bridger Capital, MC Capital and SEAVI Advent in backing the website.

Zhenai - which means "cherished love" in Mandarin - predominantly caters to audiences in the 25-45 age group. It manages more than 30 million registered members in 14 countries and regions. In addition to providing basic online dating features for free, the company has a 1,000-strong team of matchmaking professionals who offer a premium service for those who require personalized dating advice.

"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," Greg Blatt, CEO of IAC, said in a statement.

Until this year, Chinese dating websites seemed an investment trend of the past. Between 2003 and 2006, six Chinese online dating websites raised capital, but then the market went quiet. These included Zhenai's rival dating website Baihe.com, which received venture backing from Mayfield Fund, NEA, GSR Ventures and Northern Light, while SAIF is said to have invested $12.5 million in ACT Technology, the parent company of Marry5.com.

Prior to 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.

According to iResearch, China's online dating industry is expected to expand from $75 million last year to $292 million by 2015, with compound annual growth of more than 31%.

The current market leader is Jiayuan.com, with 45.5 million registered users as of August. Having received $16 million in venture funding in 2006, the company listed on NASDAQ in May of this year. It raised $78 million, which valued the entire company at nearly $172 million. Like other Chinese tech listings in the US, Jiayuan's hype didn't last. The stock closed down on its debut and is still trading at about 13% below its IPO price, although its performance is more or less on par with the NASDAQ Composite Index.

Baihe, meanwhile, announced in July that it had received a fresh round of funding from domestic investors. The company didn't give an exact figure, but said it had now raised nearly as much as Jiayuan at the time of its IPO. Baihe plans to list on a mainland bourse in 2012.

 

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• Topics
• Technology
• Greater China
• Expansion
• MC Capital Asia
• SEAVI Advent Venture Management
• Mayfield
• Sequoia Capital
• GSR Ventures
• Northern Light Venture Capital
• SAIF Partners