Chinese company Tencent Holdings has invested in US e-commerce company Fab.com.

The online gaming and social networking company backed by Alibaba, together with other investors including Japanese retail conglomerate Itochu Corporation, Atomico and Andreessen Horowitz, have invested a fund worth US$150 million in Fab.com.

The new funding values the online retailer at US$1 billion.

Tencent said it believes Fab has the potential to further develop under the wave of the global, social and mobile transformation of the e-commerce industry.

The new investment could help Fab.com expand to Asia especially in the Chinese market.

“We want to design a lifestyle that’s modern, colorful and urban-inspired and bring that all over the world – to Asia next,” said Fab’s CEO Jason Goldberg.

“Our goal here is to raise the money that the company needs in order to fulfill dreams to be the next $10 billion e-commerce business,” he said.

Fab.com started in 2010 as gay social network before converting into an e-commerce site in 2011.

The New York-based company boasts 13 million registered users.