Tencent Holdings now owns a 5% stake in buy now, pay later platform Afterpay.
The stake reportedly cost $300mn.
Afterpay has confirmed Tencent built this up through buying shares in March and April.
By May, Tencent’s stake was worth $390mn.
What does this mean?
Afterpay was rising in popularity among users and is now experiencing success on the stock market thanks to the Chinese giant throwing its weight behind the brand. Shares reportedly surged on the ASX, closing on Monday up by 23.8% with reports showing an initial surge of more than 35% on the news of Tencent’s investment.
The business will look to collaborate with its new investor in the future as it develops its technology and eyes geographic expansion.