Internet group Tencent has led a RMB2bn ($298m) series B round for China-based fresh food retailer Yipinshengxian, its Tencent Investment subsidiary announced on its WeChat account today.
Longzhu Capital, the corporate venturing vehicle formed by local services platform Meituan Dianping, also participated in the round, along with private equity firm Capital Today and venture capital firm Eastern Bell Venture Capital.
Yipinshengxian operates a range of retail stores across some 12 Chinese cites that sell affordable fresh food, including fresh produce. Customers can use a mobile app to order food from the company to be delivered to their homes or a nearby pick-up point.
The series B capital will support a planned expansion that will involve the company growing its offline store network to more than 1,000 outlets by the end of 2019.
In addition to investing, Tencent plans to supply smart retail technology that could help Yipinshengxian improve its operational efficiency and customer experience. It also intends to use big data and artificial intelligence technology to beef up its supply chain capabilities.
The company had previously received an undisclosed amount of series A funding from Capital Today in August 2018 according to China Money Network.
