Chinese Internet search provider Baidu has invested US$160 million in group-buying platform Nuomi Holdings.

Baidu now owns 59 per cent of Nuomi, which is owned by social networking company Renren.

“Nuomi’s group-buying platform and high-quality local information clearly complement Baidu’s existing mobile LBS and maps offering,” said Baidu CFO Jennifer Li.

“Its broad geographical sales coverage and established consumer base will be instrumental in helping Baidu build out our LBS platform for local merchants,” she said.

Founded by Renren in 2010, Nuomi generated approximately US$120 million in general merchandise sales and had 3.8 million active paying users in the second quarter of 2013. Of the sales transacted on Nuomi during that period, 30 per cent were derived from mobile devices.

Renren CEO Joseph Chen believes that group-buying business has tremendous potential in China and will continue to benefit from the rapid growth of the mobile Internet.

“Baidu’s strategic investment will further enhance Nuomi’s position in this sector and we are very excited about the synergies it creates,” said Chen.

In July, Baidu has also acquired app store 91 Wireless for US$1.9 billion.