• JD is one of the seven travel sites faulted by the Shanghai Consumer Rights Protection Commission for a scam that cheated a number of tourists.

JD is one of the seven travel sites faulted by the Shanghai Consumer Rights Protection Commission for a scam that cheated a number of tourists. (Photo : Reuters)

Chinese travel and tourism site Tuniu has secured a $500-million investment led by JD, one of the country’s leading e-commerce firms, who plans to purchase $350 million worth of shares in the NASDAQ-listed company.

JD, Alibaba's closest rival in the country, now owns 27.5 percent of Tuniu.

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The remaining amount of shares will be divided among the other investors including Hony Capital, Ctrip, Sequoia Capital, DCM Ventures and Temasek Holdings.

The deal is targeted to be sealed within the current quarter.

In an official JD statement, Tuniu will be closely integrated with the firm's Web-based marketplace.

As part of the travel site's responsibilities, it will "operate, for five years without commission, the leisure travel channel for both JD.com's website and mobile app, and will become JD.com's preferred partner for hotel and air tickets booking services."

The heavily fragmented online travel market has recently seen a consolidation of the industry along the lines of China's leading Web giants--Tencent, as backed by JD, Ctrip and Tuniu; Baidu, along with compatriate Qunar; and Alibaba, known for its immensely supported Tmall and Taobao that also sell travel services.

According to latest statistics, China has listed 3.8 billion tourists traveling both domestic and outbound in 2014. TravelChinaGuide also reported that travel and tourism revenues have increased to 3.4 trillion yuan, a 14.7-percent jump from last year's.

Tuniu has been on the rocks after signing up on the stock market. Last quarter, the firm had its biggest net loss, shedding off 176.5 million yuan. Chinese tech blog Huxiu has also reported that its $120-million IPO is a ponzi scheme.

The travel and tourism online marketplace is also facing tough competition with other websites joining the market segment, such as Ly.com, Yikuaiqu, Lvmama and 17U.