Goldman Sachs Investment Partners and Chinese internet giant Tencent Holdings Limited lead a US$450 million financing round in Chinese fresh produce e-commerce platform MissFresh.
The latest round witnessed the participation of Hong Kong-based investor Jeneration Capital Management and American investment management firm Davis Selected Adviser. Chinese venture capital fund Poly Capital Holdings Ltd. also engaged as a strategic investor in the round.
Besides, existing investors including Tiger Global Management LLC and Belgium-based investment company Sofina took part in the latest round.
MissFresh plans to use the proceeds to expand the company’s supply chain and develop cold chain logistics, a process of storing and transporting in a temperature-controlled environment.
In addition, the company is planning to largely invest in smart retail technology, said Wang Jun, CFO and executive director of MissFresh, in a statement.
China’s fresh food e-commerce market has been growing at a steady pace. According to a report by Chinese consulting firm iResearch, "China’s fresh food e-commerce market developed fast and kept an annual growth higher than 50% on average in the past years."
With the foray of Chinese e-commerce giants such as Alibaba and JD.com, the gross merchandise volume (GMV) of China’s fresh food e-commerce market has reached approximated RMB139 billion (US$20.3 billion), soaring 59.7% in 2017 compared with 2016, the report added.
"MissFresh plans to march into 100 cities in China. We expects to provide fresh food products to 100 million families with an one-hour delivery service," said Xu Zheng, founder and CEO of MissFresh.
In December 2017, MissFresh had secured US$500 million in series D undisclosed financing round, two months after Tiger Global Management and China’s Genesis Capital led a US$230 million series C+ round in the online fresh food provider.
Founded in November 2014, Beijing-based MissFresh currently provides service in 20 cities in China. The company sells daily grocery products through its mobile based platform. The platform offers fresh food products such as milk, meat, seafood, fruits and vegetables.