Financial terms of the deal are undisclosed.Teambition currently operates in seven mainland Chinese and offers products in five languages.
Previous investors include Gobi Partners, IDG, Northern Light Venture Capital and Vangoo Capital Partners. They participated in a Series B investment into the company in September 2015 in a round which saw Northern Light lead. IDG and Vangoo had previously led a $5 million Series A round in December 2014.
The latest investment by Tencent – which bring aggregate equity financing Teambitio has raised to an amount in excess of $17 million – has been described as part of a pattern targeting products and services that can potentially be integrated into the WeChat ecosystem by Tencent, which reported Enterprise WeChat possessing in excess of 20 million registered users.
Enterprise WeChat, launched in April 2016, handles messages, phone calls and emails, while permitting corporations to track annual leave days and expenses that need to be reimbursed, according to Tencent. Targeted at corporate clients, it requires corporates to register prior to access the workplace features.
The Tencent investment in Teambition is part of its push to secure its market position in China’s growing office-productivity software market, where it competes with Alibaba Group’s Ding Ding.
In terms of market leadership, Tencent dominates China’s mobile-messaging and social-networking market through the WeChat and QQ communication apps. As of April 2015, the five leading mobile and messaging apps in China are WeChat, Mobile QQ, Alibaba-backed Momo and Wangxin, as well as Youni, which is backed by Shanghai-based online games and book publisher Shanda.
With Tencent possessing a market capitalisation $249 billion compared to Alibaba’s $246 billion, Teambition has access to the financial backing to expand abroad. However, Tencent lacks the international profile of Alibaba.
However, an Alibaba-Tencent partnership is not out of the question, given the merger of Meituan and Dinning last year. As Teambition scales, it could eventually see itself gaining Alibaba as an investor and leveraging on the Alibaba ecosystem to enter new markets and develop new services.