China-based online grocery retailer Shandiangou has raised $40m in a series C round led by e-commerce firm Alibaba, according to China Money Network, which cited local media reports.
Founded in 2014 by two former employees of Alibaba, Shandiangou operates an e-commerce platform that sells groceries to users in five Chinese cities. The company, which fulfils up to 50,000 orders each day, plans to expand to 10 cities by the end of 2016.
Alibaba’s investment was made alongside the formation of a strategic partnership that will allow its users to buy from local convenience stores using Shandiangou and get the groceries delivered within an hour.
Shandiangou previously raised an undisclosed sum in a 2014 series A round funded by Matrix Partners China, the local affiliate of US-based VC firm Matrix Partners, and Yunjing Capital.
The series A investors also took part in a $25m series B round co-led by led by VC fund Shunwei Capital Partners and H Capital in November 2015.