Chinese shopping application Xingsheng Youxuan raises US$2 billion in funding
22 February, 2021
Chinese community food shopping iPhone app Xingsheng Youxuan has raised about $2 billion on a new funding rounded that values the business at $6 billion ahead of the new capital injection, three people with knowledge of the problem told Reuters.
Private equity businesses FountainVest Partners, Primavera Capital Group and KKR & Co are among investors on this round, several sources said. Net and gaming giant Tencent Holdings, which is an early backer of Xingsheng Youxuan, also invested in this spherical, one of them said.
The fundraising, signed just before the Lunar New Season, was led by Sequoia Capital China and in addition has attracted property developer China Evergrande Group and Singapore’s sovereign wealth fund Temasek, said another person with direct knowledge.
Xingsheng Youxuan’s spokesman Li Hao declined to comment when contacted by Reuters. Representatives for Sequoia China, FountainVest and Tencent declined to comment. Primavera, KKR, Temasek and Evergrande didn't immediately react to queries for comment.
All the persons declined to be named as the info is not publicly announced.
The fundraising comes as demand for grocery delivery in China has surged over the past year as more consumers order from the comfort of their homes due to Covid-19 social distancing restrictions.
However, regulators explained in December they might tighten oversight of the city group buying sector, which allows groups of local occupants to get discounts simply by investing in together in mass, urging internet giants never to compete for industry share with unreasonably low prices.
Headquartered in central China’s Hunan province, three-year-old Xingsheng Youxuan offers on the web bulk orders to offline food markets located inside or close to residential communities.
It now runs the service in 13 provinces and municipalities, covering a lot more than 6000 counties and over 30,000 towns, according to its website.
With an increase of than 8 million daily orders, Xingsheng Youxuan estimated it had a gross merchandise value of $6.18 billion last year, the website said.
In December, Chinese e-commerce retailer JD.Com said it would invest $700 million in the company.
Xingsheng Youxuan’s investors also include US investment company Tiger Global Management, according to its web-site.
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