The rumor is whirling that China-based travelogue Mafengwo.cn is raising up to $15 million Series B round of funding that values the company at $80 million. Though the startup didn’t confirm the news, sources claimed that investor was auditing the company.
According to people familiar with the matter, Mafengwo got started raising up to $12M B round funding as early as in April this year. At that time, the travel site was able to generate tens of thousands RMB every day through revenue cut from flights and hotels booking and profit up to RMB 10 million from advertising.
Given the team’s profitability, Chen Gang, founder of Mafengwo decided to look for new investors who can offer a better valuation. CapitalToday, the venture capital which invested US$ 5 million into Mafengwo would also join the second round.
As of late last year, the site claimed more than 2 million registered users. Those users who love and share their trips on Mafengwo make the site an online version of LonelyPlanet. As a matter of fact, more than hundreds of Lonely Planet-like travel guides co-edited by Mafengwo users had already recorded more than 10 million downloads.