PAG said on Tuesday it had closed the acquisition of a majority stake in Zhenai Inc., a Chinese online matchmaking and dating service provider.
Founded in 2005 by Dr Li Song, Zhenai.com claims over 140 million registered members and PAG expects it to generate revenues of more than RMB1.6 billion ($240 million) and net profits of more than RMB200 million ($30 million) in 2017.
The site has over 2,000 trained matchmaking specialists across China and 57 matchmaking centres in 37 cities.
Zhenai is PAG’s latest major investment in internet and technology-related industries, after such investments as China Music Corporation (now known as Tencent Music Entertainment Group), the dominant player in China’s digital music industry, and Dashu Finance, a fast growing fintech business.
Xiao Suining, partner and chairman of China for PAG, has been appointed chairman of Zhenai. Xiao was formerly chairman of PingAn Bank (formerly Shenzhen Development Bank) and president of Shenzhen Development Bank. Xiao also worked at the Bank of Communications for many years.
PAG will continue to support Zhenai’s rapid growth and bring to bear PAG’s broad strategic and financial network to help the company continue to consolidate its leadership position, it said in a statement.
PAG sees tremendous potential to grow and expand Zhenai’s business in China and across Asia.
Since the founding of Zhenai in 2005 in Shenzhen, China, Li and his team have successfully built and grown the business into a market leader, according to the statement. Li will remain a minority shareholder and a member of the board of directors.
PAG’s recent investments include Yingde Industrial Gases, China’s largest supplier of industrial gases; Home Credit China, China’s largest consumer finance company; Universal Studios Japan; Lexmark International, a major US-based printer and imaging solutions provider; Cushman & Wakefield, one of the top three property management companies worldwide; and Golden Apple Education, a childcare provider in China, among others.