25 May 2010 08:56

5151tuan grabs $30 mln in VC funding

Shanghai. May 25. INTERFAX-CHINA - Group discount Web site 5151tuan.com has received a venture capital (VC) investment in excess of RMB 200 million (about $30 million), a company official told Interfax on May 25.

"The VC funding was contributed by private investors in Guangdong Province. We plan to use the investment to expand our research and development (R & D) and public relations capacities," Zeng Shixiong, chairman of the 5151tuan, said.

"We have integrated video content on our Web site, a feature not currently available on other group discount sites," Zeng said.

The Web site currently operates local versions in Guangzhou City, Guangdong Province, Guiyang City, Guizhou Province and Hangzhou City, Zhejiang Province.

"We are planning to launch sites in additional cities, including Shenzhen, Zhuhai, Nanjing and Chengdu over the next month," Zeng added.

5151tuan has been operating for a little over a month but has already garnered more than 90,000 hits in a day.

According to Zeng, the majority of Web sites offering localized group discount coupons will gradually be forced out of the market, as they simply mimic each other and offer no innovation.

"We will recruit local talent in other cities in the future, as local people are more familiar with the local market," he added.