360Buy Raises $700 Million
360Buy is a China-based shopping website that has raised $700 million in funding. 360Buy is considered the second largest online retailer after Alibaba. This should be enough cash to delay their IPO. One of the investors in this round is called Kingdom Holding Company, based in Saudi Arabia, that focuses on companies intended to go public within 3 years.
“Our deal solidifies the strategic relationship between Saudi Arabia and China. The acquisition is also an extension of the initiative of the Custodian of the Two Holy Mosques to support the business alliance between Saudi Arabia and The People’s Republic of China. This was highlighted during the visit of the Chinese President Hu Jintao to Saudi Arabia. We are also pleased to fortify our investment and business ties with QInvest,” stated Kingdom Holding Company (KHC) chairman HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud. Prince Alwaleed is known for investing in Twitter also.
The funding will be used for strategic investments according to 360Buy CEO Richard Liu. This funding round increases 360Buy’s valuation by around 20% to $7.25 billion from $6 billion. 360Buy’s current cash flow following this round of funding is 15 billion yuan.
Another investor in this round for 360Buy was the Ontario Teachers’ Pension Plan. The Pension Plan invested $300 million at a 4.1% stake. Kingdom Holding got a 5.6% stake for $400 million. Early investors in 360Buy includes Capitol Today, Bull Capital, Pak-to Leung, Digital Sky Technologies, and Tiger Fund. 360Buy has raised a total of over $2 billion.