China: Fresh fruit chain Pagoda raises $230m in series B

Boxes of fruits and vegetables sit at the Hunts Point Terminal Produce Market in the Bronx borough of New York, U.S., on Monday, Nov. 23, 2015. Photographer: John Taggart/Bloomberg

A number of investment firms have shown interest in China’s fresh produce e-commerce industry by investing $230 million in Shenzhen-based fresh fruit chain retailer Pagoda‘s series B funding round.

According to the China Money Network report, Pagoda raised $230 million in the latest funding round participated by Co-Stone Capital, Source Code Capital, Shenzhen Capital Group Co Ltd, Zhongzhi Capital, Zhongjin Zhide Equity Investment Management, and Yuexiu Industrial Fund.

The fresh fruit chain retailer was launched in 2001. It has 2,600 stores in over 40 cities in China. In 2017, the company generated sales of Rmb8.4 billion ($1.3 billion), from Rmb6 billion a year earlier.

Pagoda is planning to use the latest proceeds to develop its fresh fruit supply chain, build up an ecosystem, and enhance its industrial Internet.

Chinese investors’ interest in the country’s fresh produce e-commerce industry is not without strong reason. According to an iResearch report, the total transaction of China’s fresh produce e-commerce industry in 2017 alone reached about $21 billion, up 59.7 per cent year-on-year.

Pagoda’s latest fund raising round followed a series A round that raised Rmb400 million. The said round was led by Tiantu and participated by GF Xinde Investment Management and other unnamed investors.

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