Guoquan Shihui, a Chinese convenience store chain that provides hotpot and barbecue ingredients, announced on Thursday that it has raised $60 million in a Series C round of financing led by Beijing-based consumer-focused investment firm GenBridge Capital.
Existing shareholders that topped up in the latest round include investment firm IDG Capital; Vision Knight Capital, a fund created by former Alibaba CEO David Wei Zhe; and Buhuo Ventures, which invests in TMT and innovative consumption.
Shanghai-based Guoquan Shihui operates nearly 4,000 stores that provide over 400 stock keeping units (SKUs) of hotpot and barbecue ingredients such as frozen and fresh produce products, snacks, hotpot condiments, dipping sauces and beverages.
“High quality, low price, and high-efficiency supply chain have become some of our core competitive edges,” said Yang Mingchao, founder and president of Guoquan Shihui, in a statement.
Yang said that the company has spent years “perfecting the infrastructure” for a well-developed supply chain, which allows the company to maintain the price of its products unchanged while making a margin, especially during the pandemic period when overall food supplies tightened.
Since the establishment of its first shop in 2017, the company has built a convenience store network that covers 24 provinces and direct-administrated municipalities in China. The company anticipates a year-over-year sales growth of 400 per cent in 2020, after achieving a similar feat in 2019, according to its statement.
The new financing will be used to further strengthen the company’s supply chain efficiency and invest in product optimization, IT development and talent recruitment.
The Series C round, which is the fourth investment completed by Guoquan Shihui, brought its total fundraising to $123 million.
In its previous round, Guoquan Shihui garnered $50 million in a Series B round led by IDG Capital this February, as the company targeted to hit 5,000 stores in China and further expand from first and second-tier cities to lower-tier cities and counties in 2020.
The startup closed 50 million yuan ($7 million) in a Series A+ round from Buhuo Ventures and Shenzhen-listed quick-frozen food provider Sanquan Food in October 2019. It also received 45 million yuan ($6 million) in a Series A round from Buhuo Ventures in August 2019, shows the company website.