Chinese community grocery shopping app Xingsheng Youxuan has reportedly raised some US$2 billion in a new funding round, sources have revealed to Reuters.
Led by Sequoia Capital China, investors in the billion-dollar round included Private equity firms FountainVest Partners, Primavera Capital Group and KKR & Co, as well as internet giant Tencent Holdings, which is a current backer of Xingsheng Youxuan.
The round also attracted property developer China Evergrande Group and Singapore’s sovereign wealth fund Temasek. Xingsheng Youxuan was valued at $6 billion prior to the latest cash injection, according to Reuters.
Xingsheng Youxuan, Sequoia China, FountainVest, Tencent and Temasek declined to comment. Primavera, KKR and Evergrande did not respond to queries for comment when approached by Reuters. It is also not clear what the e-commerce app plans to do with fresh injection of funds.
Based in China’s Hunan province, Xingsheng Youxuan was founded in 2018. The company delivers online bulk orders to offline grocery stores located inside or near residential communities and runs the service in 13 provinces and municipalities, covering more than 6,000 counties and over 30,000 towns, according to its website.
With some 8 million daily orders, Xingsheng Youxuan reported a gross merchandise value of 40 billion yuan ($6.18 billion) in 2020. In December, the company inked a $700-million investment from Chinese e-commerce giant, JD.com – Alibaba’s archrival.
An increase in demand for grocery delivery in China in the past year comes on the back of a change in consumer habits and Covid-19 social distancing regulations, with many opting to order from the comfort of their own homes.