China-based online grocer Xingsheng Youxuan is approaching the close of an $800m series C-plus round that already includes internet group Tencent, 36Kr reported today,
Investment firm KKR is set to lead the round at a $4bn post-money valuation, with Sequoia Capital China, Capital Today, Tianyi Capital, Zhongding Capital and China Renaissance’s Huaxing New Economy Fund also participating.
Xingsheng Youxuan runs an online platform selling food and household goods through a group buying model that enables discounts for shoppers who work in local groups. It was formed as the e-commerce arm of supermarket chain Furong Xingsheng in January 2018.
News of the imminent funding comes just weeks after reports the company was set to raise $300m in series C funding from investors including Tencent and Primavera Capital at a $3bn valuation.
The funding is representative of the increasing popularity of online grocery shopping during the coronavirus lockdown in China. The series C-plus round is expected to precede an initial public offering, sources told 36Kr.
Primavera Capital led a $200m series B round for Xingsheng Youxuan in October 2019 at a reported $1bn valuation, investing alongside Tencent, KKR, ZhenFund, GSR Ventures and Eastern Bell Capital.
The October funding came three months after KKR invested $40m at a $700m valuation, and just over a year after the company raised an eight-figure dollar amount in a series A round that included Capital Today, ZhenFund and Jinshajiang Venture Capital.
Photo courtesy of Xingsheng Youxuan.
