Alibaba’s China-based food delivery platform is reportedly on the lookout for $2bn in new financing from potential investors in a move to expand its business.

People familiar with the matter were reported by Bloomberg as saying that “investors would get a piece of a company”.

Under the report, the food delivery business is also expected to go for a future initial public offering (IPO).

In April this year, Alibaba Group announced to purchase all outstanding shares of for $9.5bn.

Commenting on the acquisition, Alibaba Group CEO Daniel Zhang said: “Our shared belief that New Retail will create more value for customers and merchants has brought us together.

“ can leverage Alibaba’s infrastructure in commerce and find new synergies.”

“Looking forward, can leverage Alibaba’s infrastructure in commerce and find new synergies with Alibaba’s diverse businesses to add further momentum to the New Retail initiative.” offers customers a wide range of products and services through its on-demand delivery services with a major focus on food delivery.

The company competes with Meituan Dianping, a technology start-up and Chinese food reviews and delivery giant backed by Tencent Holdings.

Both the food delivery platforms offer huge discounts on food orders to attract customers and capture the majority of market share, according to the news agency.