Chinese tech giants Tencent and JD.com are to invest $863m (£646m) into discount Chinese etailer Vipshop in a bid to boost their fashion offering.
JD.com is investing $259m (£194m) and Tencent $604m (£452m), to give Tencent a 7% stake and JD.com 5.5%.
Vipshop’s site VIP.com will appear on the main page of JD.com’s mobile app and WeChat page, and be able to attract traffic from Tencent’s social media app.
Chairman and CEO of JD.com Richard Liu said the agreement with Vipshop would help the company “further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business”.
Vipshop’s gross profit increased by 19.4% to RMB3.5bn (£396m) in its third quarter ended September 30 2017.
Earlier this year JD.com bought a stake in Farfetch to create “the premier platform for luxury ecommerce across China”.