One of China's largest fashion e-commerce sites, Mogujie.com, is merging with its competitor Meilishuo.com.
Mogujie was founded in 2011 by a former Alibaba engineer and started as a image sharing network. Both sites combine social functions with women's fashion and they collect commission from the merchants on the platforms.
Planning to Raise More Capital
Mogujie is valued at about $1.7 billion and together with Meilishuo, backed by Internet conglomerate Tencent, they will form a fashion company worth close to $2.5 billion.
After completing the merger they are planning to raise more capital and the valuation could then reach nearly $3 billion, according to Wall Street Journal.
Mogujie is said to be worth twice as much as Meilishuo. Together they both generated a revenue of around $3 billion (20 billion yuan) last year.