Chinese Internet giant Tencent and Chinese online consumer guide site Dianping.com recently invested 300 million yuan ($49.2 million) in Wiwide.com, a public Wireless Fidelity (Wi-Fi) service provided, to step into the rapidly growing O2O (online-to-offline) market, both firms said on Monday.
Xiaomi, the world's third largest smartphone maker, also invested in Wiwide.
Wiwide currently provides Wi-Fi network services to about 30,000 public locations in China, including 20 of the country's airports and 500 outlets such as Burger King and Starbucks.
The wireless Internet service provider is a key player in China's online market as it acts as the gateway to millions of China's Internet users. Large firms, including Lenovo and Baidu, have already invested in the sector.
"The investment will help Dianping to connect offline shops and online consumers and expand O2O strategy," said Dianping in a statement via email. No additional details were given regarding the benefit of the deal to its consumers.
According to industry insiders, the Wiwide investment might allow Tencent and Dianping users to access the Internet using their accounts to receive coupons and promotions from the two online firms.
Tencent, maker of the famous Tencent QQ and WeChat instant messaging app, bought 20 percent shares in Dianping.com in February.