E-commerce group JD.com agreed on Friday to invest $700m in China-based group buying platform developer Xingsheng Preference Electronic Business, according to a securities filing.
Founded in 2014 and mainly known as Xingsheng Youxuan, the company oversees an online platform that allows customers in local communities across 14 Chinese provinces to buy groceries and household items at bulk in order to secure discounts.
Xingsheng Youxuan and JD.com intend to collaborate on technology, logistics and supply chain services across the country’s lower-tier cities.
The transaction comes after reports in July this year that investment firm KKR was set to lead an $800m series C-plus round for the company also backed by internet group Tencent, Capital Today, Sequoia Capital China, Tianyi Capital, Zhongding Capital and China Renaissance’s Huaxing New Economy Fund.
The series C-plus funding was reportedly being raised at a $4bn post-money valuation and it was preceded by a $200m series B round led by Primavera Capital in October 2019, reportedly valuing Xingsheng Youxuan at $1bn.
Tencent, KKR, ZhenFund, GSR Ventures and Eastern Bell Capital also participated in the series B round, which came three months after KKR invested $40m at a $700m valuation.
Xingsheng Youxuan had reportedly received an undisclosed amount from Tencent in May 2019, following an eight-digit dollar amount in a 2018 round featuring GSR Ventures and ZhenFund.
