Micheng Shenghuo, the China-based group-buying portal backed by corporates Bertelsmann, Joyy, Legend Holdings, LY, Suning and Tencent, filed for bankruptcy last week.
Formed in 2018 by digital travel agency LY (also known as Tongcheng) under parent company Suzhou Xiancheng Technology, Micheng Shenghuo had built an online platform that helped users buy groceries in bulk through messaging app WeChat at discounted prices.
The company was formerly known as Tongcheng Life but rebranded to Micheng Shenghuo on July 6 this year, the day before it announced insolvency proceedings citing inadequate management and struggling operating performance. It said its stakeholders had tried to help overcome the hardships without fruition.
Micheng Shenghuo last raised funding in August 2020 when it merged with peer Linlinyi. Bertelsmann Asia Investments (BAI), a local vehicle for media group Bertelsmann, joined Xianghe Capital and Oriza Holdings to supply a nine-figure dollar amount of series C-plus funding for the combined entity, which was reportedly valued above $1bn.
Social media portal Joyy led a $200m series C round for Tongcheng Life two months earlier, investing alongside BAI and Legend Capital, the venture capital firm formed by conglomerate Legend Holdings, in addition to Engage Capital, GSR Ventures, Oriza Holdings, Welight Capital and LY’s Tongcheng Capital accelerator.
Legend Capital had led a $100m series B round for Tongcheng Life in September 2019 that included BAI, Engage Capital and ZhenFund.
The last three had taken part in a June 2019 round sized in the eight-figure yuan range, together with Welight Capital, Oriza Holdings and GSR. It came the month after fruit vendor Baiguoyuan, Tongcheng Capital, ZhenFund, Welight and Oriza had provided a similar sum.
LY subsidiary Zhongchuang Fund injected $1.5m in the company in 2018 before contributing to an eight-figure yuan round the following month along with internet group Tencent.
Linlinyi had closed a $30m series A round led by Capital Today in early 2019 that also featured retail group Suning and existing investors Source Code Capital, Gaorong Capital and Sequoia Capital China, reportedly taking its total funding to $100m.
