Nice Tuan, a Chinese community e-commerce platform also known as Shihuituan, has raised $88.3 million in a new funding round from a group of investors to raise its stake in China’s increasingly competitive community e-commerce field.
The investment was backed by Alibaba, Beijing-based angel fund ZhenFund, as well as Chinese venture capital companies Qiming Venture Partners and China Growth Capital. Joy Capital, a Chinese investment firm specialised in the TMT and consumption areas, and INCE Capital, an investment firm created by former Qiming executive JP Gan, also poured money into the round, according to a statement on Thursday.
Beijing-based Nice Tuan offers fresh produce, beverage, skincare products, leisure food and daily supplies through a namesake WeChat mini program to community customers. Nice Tuan said that it serves 10 million families in over 60 cities across China, shows the company website.
The company was established in April 2018 by Chen Ying, who also created The Good Stuff in 2014. The Good Stuff, operated by Beijing WoAiXiaoCheng Technology, mainly provides middle-class consumers in first and second-tier cities with premium products and services.
Proceeds of the new round will be used to increase investment in supply chain and technologies, speed up its expansion into lower-tier cities, and enhance the construction of the industry chain, according to the statement.
Nice Tuan secured 100 million yuan ($14 million) in an angel round from ZhenFund, Qiming Venture Partners, and Joy Capital in August 2018.
The fresh capital came after Nice Tuan merged with its homegrown counterpart Niwoning.com in August 2019. Niwoning.com, which received capital injections from venture capital firm GGV Capital and Hong Kong-listed CMBC Capital, boasts five million users and offers fresh produce, leisure food, and other commodities through a WeChat mini program and convenience stores.
Nice Tuan predicted that its monthly sales volume would reach 500 million yuan ($72 million) after the merger, according to statistics cited in a statement released by ZhenFund last August.