China-based agricultural product distributor Wangjiahuan has completed an $87m series B round led by local services portal Meituan Dianping, DealStreetAsia reported today.
The round also featured Hidden Hill, the $1.6bn private equity fund formed by logistics facility operator GLP in mid-2018. Hidden Hill had provided $58.5m in series A funding for Wangjiahuan in August the same year.
Also known as Guangdong Wangjiahuan Agricultural Products Group, Wangjiahuan processes and distributes agricultural goods to some 200 food production brands. It also assists in the development and construction of logistics centres.
Zhou Yu, senior investment director for Meituan-Dianping, said he expects accumulated advantage to play out in the sector as the Chinese government continues to strengthen food safety regulations.
The corporate’s investment was related to its increased activity in the catering sector. It could theoretically help Wangjiahuan in areas such as staffing, delivery and vehicle management.
The series B funding has been allocated to the development of more efficient resources for urban distribution, the procurement of shared products and the bolstering of agricultural activity on a county level. Wangjiahuan will also put more resources into ensuring food safety and quality.
Image courtesy of Wangjiahuan.
