Furong Xingsheng, a China-based community supermarket operator backed by internet group Tencent, has received a $40m investment from private equity firm KKR, 36Kr has reported.
The deal reportedly valued the company at $700m and it comes two months after Tencent had invested an undisclosed amount in the company, according to Itjuzi.
Xingsheng operates a network of local retail stores that span 12 Chinese provinces, selling fresh produce and groceries.
Customers can order goods online through the company’s WeChat account and can pick them up in-store or get them delivered. Groups of residents living close to one another can also take part in flash sales of vegetables or fruits through WeChat groups.
Proceeds from the KKR investment will be used to expand the reach of Xingsheng’s stores to additional small cities and towns in China.
The company had raised an eight-figure dollar amount in September 2018 from investors including venture capital firms GSR Ventures and ZhenFund. It is reportedly preparing to raise new funding at a $1bn pre-money valuation.
Private firm Capital Today is also an existing investor in the business according to KrAsia, though the company has not disclosed when it received that financing.