Chinese e-commerce service provider Youzan announced on Tuesday it has completed an HKD 1 billion (around $130 million) round of funding led by Tencent, as the gaming giant pushes forward on growing its enterprise-facing businesses.

According to an announcement released Tuesday after trading hours, Hong Kong-listed Youzan has agreed to issue around 1.72 billion new shares at HKD 0.53 per share to five parties. Poyang Lake Investment, a fully owned subsidiary of Tencent, is purchasing the largest portion of more than 1 billion shares totaling around HKD 550 million. Tencent will account for approximately 6.5% of the total number of shares after the deal is completed.

The company’s share price surged by more than 12.5% on Wednesday by the end of morning trading.

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen