Magento Commerce, the Ecommerce platform, now has an impressive $250 million in new funding from Hillhouse, a Chinese investment firm.
Hillhouse, one of China’s biggest investors, is led by chairman Zhang Lei, an early backer of Chinese Internet giant Tencent. Hillhouse started out 11 years ago with $20 million in funding from the Yale University Endowment.
The cash infusion brings Magento’s valuation to $700 million, according to the Financial Times, citing unnamed sources.
The new money will fund a global expansion of sales and marketing operations—especially in Asia, which Zhang sees as a particularly hot market. It will also bolster customer support, product development, and potential acquisitions, according to a statement from Magento on Wednesday.
Magento was founded in 2008, and its technology provides the technology underlying many online shopping sites. It was sold to eBay (ebay, +0.41%) three years after launching. Then, in November 2015—months after the eBay-Paypal separation—eBay agreed to sell what was its enterprise division to Permira, a global investment firm and other investors. That entity was dubbed Magento Commerce.