Food producer Juewei Food and online food ordering service Ele.me have formed a RMB205m ($30m) China-based joint venture that will invest in catering companies, China Money Network reported today.
Ele.me and Juewei subsidiary Shenzhen Wangju Investment will each supply RMB100m for the venture, dubbed Juele Investment Fund. They have not revealed from where the remainder of the capital will be sourced.
The fund will invest in consumer-focused catering businesses capable of growing rapidly with access to funding, and companies with business models it feels will be able to be scaled relatively quickly.
Juewei, which sells products such as duck necks and chicken feet, and Ele.me are also seeking portfolio companies with which they can work to develop food-based products that can be marketed fairly soon.
The announcement of the round comes after reports late last month that Ele.me was set to raise $1bn in a round co-led by e-commerce group Alibaba and its financial services affiliate Ant Financial, at a valuation of between $5bn and $6bn.