HungryPanda, a food delivery app that focuses on Chinese customers living abroad, has raised $70 million in its Series C funding round led by Swiss investment firm Kinnevik AB, according to an announcement.
Existing investors 83North and Felix Capital and other investors such as Piton Capital, VNV Global, and Burda Principal Investment also joined Kinnevic in the funding round.
The fresh capital will help HungryPanda, founded by Eric Lu in 2017, continue its global expansion as it seeks to widen its market share in the food delivery space, with a focus on providing specialist online ordering platform for Chinese customers living abroad.
“The investment also furthers Kinnevik’s food strategy and complements our existing investments by adding exposure to the out-of-home space, particularly popular with younger users, in addition to our existing investments in online grocers focused on at-home cooking,” Kinnevik CEO Georgi Ganev said.
The Academy for Cultural Diplomacy said there are about 40 million Chinese who are living outside mainland China, Hong Kong, Taiwan, and Macau. Most of these overseas Chinese are living in Southeast Asia.
The London-headquartered startup seeks to overcome cultural barriers by offering Chinese users with tailored user experience, including language and payment options.
HungryPanda was created to fix a problem that its founder experienced first-hand – getting hold of authentic Chinese food on-demand away from home. The business has quickly grown 30x in three years with a 500-person strong team operating in six countries across the world.
According to the announcement, HungryPanda is already profitable in the UK and other major cities such as New York. The startup joins a market that is expected to supersize to a hefty $200 billion by 2025, according to a Forbes estimate.
In China, Meituan Dianping is the unchallenged market leader with a 70-per cent share, while Grab and Gojek continue to lead the Southeast Asian market.