SHANGHAI Nov 13 Chinese e-commerce firm 360buy
has closed its latest round of financing, raising about $400
million that values the company at $7.3 billion, local media
Financial muscle is important in China's crowded e-commerce
industry where more than 200 million people shop. But the boom
means some e-commerce firms struggle to draw repeat users and
have to fight costly price wars and use constant discounts to
keep users engaged.
The company, also known as Jingdong Mall, declined to
provide financial details of the fundraising. The valuation of
$7.3 billion is lower than the valuation 360buy achieved last
April when it raised $1.5 billion from a slew of international
investors, local media said.
The latest round was participated in by Ontario Teachers'
Pension Fund and the Tiger Fund.
The company was reportedly planning to list in 2012 to boost
its balance sheet, but 360buy denied that, saying it has no
plans to list before 2013.
The company recently launched an international website to
cater to buyers outside China and take on rivals like Alibaba
Group's Taobao, Amazon.com Inc and Ecommerce
China Dangdang Inc.
In August, a price war erupted between 360buy, Suning
Appliance, and GOME Electrical Appliances Holding
, causing an investigation by the government.
China's e-commerce industry grew 45 percent year-on-year in
the second quarter to reach $45 billion in transaction volume.