NEW YORK (

TheStreet

) -

Groupon

said Monday it has launched a daily deal service in China, in collaboration with Chinese Internet giant

Tencent

.

Called GenPeng, the business will offer subscribers daily discounts on consumer services like restaurants and shopping. The service will initially cover Beijing and Shanghai, and eventually spread to other major cities in China.

Groupon will be entering into a market already flooded with more than 1,000 Chinese players.

Last week, China's largest e-commerce website

Taobao

said it will begin promoting local deals on its website.

China had 18.75 million group-buying users by the end of 2010, and the category is poised for significant growth, according to the China Internet Network Information Center.

Groupon, which recently

raised a $950 million funding round to continue

its global expansion, was valued at more than $4.75 billion. In December, Groupon turned down a $6 billion offer from

Google

(GOOG) - Get Report

.

The Chicago-based company reportedly had sales of $760 million last year, up from $33 million in revenue the year before, according to the

Wall Street Journal

.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

http://twitter.com/Ozoran

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