(Yicai Global) Sept.12 -- Several investors are seeking to join Alibaba GroupHolding's newly-formed overarching companyforits recently mergedEle.me and Koubeiplatforms. The new company'sinitial funding willexceeditsoriginal USD3 billion--upbyat least USD1 billion--withthepossibilityofit thussurpassingMeituan-Dianping's Hong Konginitial public offering, an insider told 36Kr.

Meituan-Dianping, the biggest competitor to Ele.me in the domestic service business,reapedaround USD4 billionfrom its IPO,and so if successfulthe new holding company'sfinancing maytop this figure. This is only three weeks afterHangzhou-basedAlibabaand Japan's SoftBank Group investedUSD3 billion.Daniel Zhang,Alibaba'schief executive,will be theconcurrentCEO of theapparently as-yet unnamednewfirm.

The company receivedtheUSD3 billion investment promiseat the same time thatAlibaba independentlyfundedit. The new companywas alreadyvalued ataround USD2.5 billion in the currentroundat that time.Alibaba will keeponline meal platformEle.me and Koubeiwhichbringslocal businesses online byoffering payment and other servicesasseparatebrands with independentoperations,withEle.me the household-oriented services, andKoubeiasthe merchant-oriented businesspittedagainstthe Meituan-Dianpingarm of its rival Shenzhen-headquartered Tencent Holdings,whileEle.me and Koubei will further integrate theirquickdeliveryability, merchant service system and masses ofpayment data.

More abundant cash will flow in as more investors seetheholding company'spotential, which willbringthe domestic serviceclash betweenAlibaba and Meituan-Dianping toa head.

Editor: Ben Armour