Alibaba has agreed to buy some 30 percent stake into China's food delivery service Ele.me, valued at 1.3 billion U.S. dollars.
The deal is expected to be completed after the Spring Festival in Feburary of next year.
After completion, it would make Alibaba the biggest shareholder of the food delivery application.
Ele.me, which announced its latest fundraising of 630 million dollars in August, is expected to see its estimated value boost to 4.5 billion dollars after Alibaba's cash injection.
Both Ele.me and Alibaba declined to comment.
Ele.me was launched in Shanghai in 2009 and has topped the country's booming food delivery service since then.
As of this Monday, 100 million yuan worth of deals were made on the application.
Source:
http://english.cri.cn/12394/2015/12/25/3521s910075.htm
