Internet group Tencent has co-led a $450m funding round for China-based online grocery retailer MissFresh, Reuters reported today, citing a statement by MissFresh’s financial adviser, China Renaissance.
The round was co-led with investment banking firm Goldman Sachs’ Investment Partners unit and included Jeneration Capital Management, Davis Selected Advisers, Poly Capital, Glade Brook Capital, Tiger Global Management, Sofina and China Renaissance itself.
MissFresh oversees an online operation that sells fresh produce as well as meat, dairy products and beverages to customers in 20 Chinese cities including Beijing, Shanghai, Guangzhou and Shenzhen.
The funding will support the expansion of the company’s cold chain logistics and supply chain capabilities in addition to smart retail technology.
Xu Zheng, MissFresh’s founder and chief executive, added that the company eventually intends to establish a network of warehouses spanning 100 cities across the country.
Tencent had also taken part in a $230m series C-plus round for MissFresh in September 2017 that was co-led by Tiger Global Management and Genesis Capital. Local media reports suggested it was set to raise another $500m in December but that funding was not confirmed.
MissFresh had reportedly already received $10m in a series A round featuring Tencent and GX Capital when it secured a further $31m in a Tencent-led series B round also backed by Zheshang Venture Capital Management and unnamed additional investors in 2015.
Yuanyi Capital led the company’s $36m series B-plus round in 2016, investing alongside China Growth Capital.
Lenovo Capital and Incubator Group, a subsidiary of electronics maker Lenovo, co-led a $100m series C round with Zhejiang Zheshang Venture Capital in January 2017 that included Tencent, KTB Investment & Securities, Grand Flight Investment and China Growth Capital.