Yonghui Fresh Food, the business-to-business fresh produce retail platform launched by supermarket chain Yonghui Superstores, has raised RMB1bn ($153m) in a round co-led by internet group Tencent, Caixin Global reported yesterday.
Investment banking group China International Capital Corporation’s CICC Capital subsidiary co-led the round through its CICC Qizhi fund, and it also featured Yonghui Superstores itself.
Minsheng Securities’ Minsheng Equity Investment Fund Management unit filled out the list of participants along with financial services firm China Merchants Bank, Greenwoods Investment, Hillhouse Capital and Sequoia Capital China.
Formed in 2011, Yonghui Fresh Food distributes fresh fruit and vegetables to business customers of its parent company, through a network of processing facilities and distribution hubs. It generated about $470m in revenue in the first nine months of this year.
Yonghui Superstores had joined investors including Hillhouse Capital and Sequoia China to supply approximately $145m in series A funding for Yonghui Fresh Food in 2018, according to Caixin. It will remain the spinoff’s largest shareholder, with a 32.3% stake.
Hillhouse owns a 26.8% stake in Yonghui Fresh Food, Sequoia China 13.4% and Tencent, CICC Qizhi, Minsheng, China Merchants and Greenwoods each hold about 0.4%.
Tencent’s Linzhi Tencent Technology affiliate had previously paid $29.9m for a 15% stake in another Yonghui Superstores spinoff, supply chain services provider Yonghui Yunchuang Technology (also known as Caishixian), in early 2018.
