US$250 million, Tencent’s new round of investment in Mafengwo shows its ambitions in the tourism industry

May 31, 2019 MaFengWo WeChat Trip.com

On May 23, Mafengwo announced the completion of a new round of financing of $250 million led by Tencent. This is another investment by Tencent after October 2018. It seems to be announcing its intentions for online travel. Why have Mafengwo, who has suffered many setbacks, been favored by Tencent? What kind of plan does Tencent have?

Mafengwo

Since 2018, Mafengwo has been in controversy for a long time. The "oolong incident", "data fraud", "relevant departments require it to rectify", and "layoff incidents" continue to appear in the public. Despite the constant setbacks, Mafengwo did not want to dispel the IPO, but immediately entered the next round of financing preparations.

Mafengwo was founded in 2006 and began its corporate operation in 2010. Based on more than ten years of accumulation, Mafengwo has formed a data-driven, UGC-centric "content + transaction" travel social platform. This unique model also provides the possibility for Tencent's subsequent investment.

TO READ THE FULL ARTICLE