China-based online grocery delivery service Xingsheng Youxuan is raising $300m from investors including internet group Tencent at a $3bn valuation, Bloomberg reported yesterday.
The round also features private equity firm Primavera Capital, according to people familiar with the matter, who said the company expects it to precede an initial public offering. It is set to formally close next month.
Xingsheng Youxuan runs an online platform that enables users in about 400 Chinese towns and cities to order groceries and household items for home delivery.
The company’s base is in the south of the country, and it has benefitted from general growth in the sector following the recent Covid-19 lockdowns across China.
The forthcoming funding will follow a $200m series B round led by Primavera Capital in October 2019. The October round valued Xingsheng Youxuan at $1bn and included Tencent, investment firm KKR and venture capital firms ZhenFund, GSR Ventures and Eastern Bell Capital.
ZhenFund had reportedly joined Capital Today and Jinshajiang Venture Capital to provide an eight-digit dollar amount for the company in the form of a September 2018 series A round.
