Shanda-led investor group plows $309 mln in Pinju (updated)
Editor's note: A previous version of this story omitted Ge Binbin's role in Pinju due to a technical error. This has been corrected in the version below.
Beijing. July 12. INTERFAX-CHINA - Pinju.com, a new online retailer in China, has secured a huge round of funding from a group of investors led by Shanda Interactive Entertainment Ltd. (Shanda), Yao Cheng, Shanda's investor relations representative, told Interfax July 12.
The total investment amount is a whopping RMB 2 billion ($309 million) for the start-up. Shanda accounted for 40 percent or RMB 800 million ($123.60 million) of the funding, according to Yao, who declined to name the other investors.
The move marks Shanda's first foray into China's lucrative online retail sector, dominated by Alibaba Group's Taobao.com, Chen Shousong, a researcher with Analysys International, told Interfax July 12.
Nasdaq-listed Shanda is diversifying its revenue stream beyond China's maturing online game sector by expanding operations in music, literature and film. The company acquired online video website Ku6 Media Co. Ltd. for $44 million in November 2009, and launched a RMB 20 million ($3 million) mobile application incubator fund in January this year.
The investment also appears to deepen ties between Pinju's founder Ge Binbin and Shanda, which were cemented last year when Shanda acquired Goldcool Games, an online game developer founded by Ge in 2006.
Pinju, an online shopping mall, is in closed testing at present and slated to launch in October this year. The website will initially use Shanda's online payment service, Shengfutong, to facilitate transactions.