Baidu 'to raise up to $500m' for Waimai

Baidu Inc is seeking to raise as much as $500 million for its Waimai food delivery unit amid a costly battle with other Chinese internet giants for customers, according to people familiar with the matter.

The company is looking for at least $300 million and the funding round hasn't been finalized, the people said, asking not to be identified as the details are private.

Using scooters to supply everything from Starbucks coffee to sliced sashimi, Waimai is in a pitched battle with rivals to sign up delivery men and to convince restaurants to join its service. Baidu is up against Ele.me, which scored a $1.25 billion investment from Alibaba Group Holding Ltd, and the Meituan-Dianping business backed by Tencent Holdings Ltd.