In China's fierce mobile battleground, analysts say Tencent is a step ahead of rival Alibaba as the social networking firm makes strides in e-commerce.
"My pick would be Tencent since they really dominate the mobile market with their WeChat app, with 600 million users on the app every day. Now, they're expanding into e-commerce and games have been a stronghold, so in the first innings of the mobile war, I would say Tencent is a little bit ahead of Alibaba," David Chao, co-founder and general partner at venture capital firm Doll Capital Management, told CNBC's "Asia Squawk Box."
While Alibaba, which is gearing up for a New York initial public offering, is the mainland's biggest player in online commerce with two retail sites and payment service Alipay under its belt, the smartphone market presents a challenge for founder Jack Ma.
Read MoreWhatare Alibaba's headquarters like?
That's where Tencent comes in. The world's fourth-largest web company by market capitalization, Tencent's instant messaging applications WeChat and QQ have made it a household name in China.
The Shenzhen-based firm reported on Wednesday that WeChat users jumped 11.5 percent on quarter to 396 million users.