Dianping made an announcement that the social networking company from China is raising a new $100 million (US) round of funding across four funds that values the company at $1 billion (US). The funds include Trust Bridge Partners, Sequoia Capital, QiMing Ventures and Lightspeed Venture Partners.
Insiders compare Dianping to Yelp and report the China based social rating site is very popular, involving 2,000 cities in China, with more than 1 million local businesses on its website. The monthly active visitors are over 30 million with over 20 million ratings and reviews on those local businesses.
According to TechNode, Dianping’s CFO Ye Shuhong says the social rating company turned profitable in 2008, with annual revenue growth of over 200% year after year since turning a profit. Management expects the company’s 2011 profit to be 5 times greater than that of 2010’s RMB 200 million, US $ 30.6 million.
TechNode also reports that Dianping CEO Zhang Tao said that the company decided to put off its scheduled IPO in 2011. He is certain that there are some new business models emerging with an untapped market, which the company is considering. Going public too soon would put the management team under earnings pressure, which might hold back development of new business for the company.
Dianping wants to combine Yelp, Groupon and Foursquare models to form a comprehensive online life services platform. With Dianping’s new round of funding, it seems the social rating site will be reaching for even more advanced goals.