Alibaba leads $1b funding for Ele.me

HONG KONG - Alibaba Group Holding Ltd plans to lead an investment round of at least $1 billion in Ele.me, one of the largest players in China's food-delivery service sector.

People familiar with the deal said that funding from Alibaba and its financial arm, Ant Financial Services Group, will value Ele.me at between $5.5 billion and $6 billion.

The move will help Ele.me compete with a rival service backed by Tencent Holdings Ltd, people familiar with the deal said, requesting not to be named because the matter is private.