Internet group Tencent co-led a RMB2.5bn ($358m) series C round yesterday for China-based fresh food retailer Yipin Fresh, according to an announcement by the corporate on messaging app WeChat.
The round was co-led by private equity firm Capital Today and also featured venture capital firm Eastern Bell Venture Capital.
Founded in 2013 and also known as Yipinshengxian, Yipin operates a range of almost 900 24-hour stores selling fresh produce across some 17 Chinese cities, having expanded the size of that network from just above 400 in 2018.
The company also sells food through an online platform and a WeChat portal. It is allocating the series C funds to research and development in addition to the expansion of its warehouse capacity and the further integration of its online and offline activities.
Tencent led Yipin’s $298m series B round in March 2019, investing alongside Capital Today, Eastern Bell and Longzhu Capital, an investment vehicle for local services portal Meituan Dianping. That followed an undisclosed amount of series A funding from Capital Today the year before.
Yipin is one of several sizeable operators in China’s groceries market to have received funding from Tencent. Its portfolio also includes MissFresh, valued above $3bn as of last month; Xingsheng Youxuan, which is raising money at a similar valuation; and Tongcheng Life, a group buying platform that recently merged with peer Linlinyi.
