H Capital has led a RMB83 million (US$12.5 million) new round of financing in Chinese food catering firm Funye, according to a company announcement.
Sichuan Taihe Group, Yanzhuang Oils, Shanghai Qinghong Guyi Capital Management Center, Shanghai Changjingpai Investment Center and unnamed individual investors also participated.
After this round of financing, the company would have raised over RMB100 million in the past three months. Its enterprise valuation has also reached RMB360 million (US$54 million).
The company says it will use the proceeds on expanding traditional sales channels, expansion of offline and novel marketing activities.
Funye is eyeing the massive catering market in China, where trillions of seasoning, spices and other fast consumables are purchased every year, as Chinese consumers are seeking better quality food and purchase experience.
The company claims to have sold 30,000 bottles of spicy sauce within two hours after a new product launch in May, with online sales reaching over RMB10 million in two months, driven by marketing techniques using popular Internet celebrities.
What Funye is trying to do is integrating online celebrities, live video streaming with e-commerce to drive sales, while at the same time focusing on improve logistics efficiency.
Founded in 2014, Funye previously received an angel round and series A round from Ce Yuan Ventures, Zhen Fund, Fang Fund Partners, and HuiYuan Group.
Founded in 2002, H Capital is led by Tiger Global Management LLC’s former China managing partner Chen Xiaohong and DCM China co-founder Ruby Lu.