IDG leads $50m funding in Chinese supermarket chain Guoquan Shihui

Guoquan Shihui, a Chinese convenience store chain that provides hot pot and barbecue ingredients, has garnered $50 million in a Series B funding round led by Boston-born investment firm IDG Capital.

Vision Knight Capital, a Chinese investment company with over 10 billion yuan ($1.42 billion) in assets under management (AUM), and Beijing-based Buhuo Ventures, which primarily invests in TMT and innovative consumption fields, also poured money into the transaction, said Vision Knight Capital in a WeChat post on Monday.

The Series B round is the third investment raised by the Chinese convenience chain operator in the past six months. The total fundraising amount of the three rounds exceeded 450 million yuan ($64 million).

Launched in 2017, Guoquan Shihui now operates over 1,700 shops to offer self-developed and third-party hot pot and barbecue ingredients for individual customers to cook at home.

The Shanghai-based company has operations in eight provinces and three municipalities in China. The firm targets to expand the total number of stores to 5,000, and further expand from first and second-tier cities to lower-tier cities and counties in 2020.

Since the company became profitable in 2018, its revenue experienced a five-fold increase in 2019 compared to that of 2018. The company claimed to have maintained an over 400 per cent growth in revenue since the start of 2020, according to the WeChat post.

Proceeds will be used to significantly improve the supply chain, strengthen operations in major markets, expand its online business, and increase investment in talent recruitment.

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.

Haidilao, the largest hot pot restaurant chain in China, raised HK$7.5 billion ($962 million) in an initial public offering (IPO) in Hong Kong in September 2018. The stock has nearly doubled, giving the Beijing-based company HK$171 billion ($22 billion) in market capitalization. Zhang Yong, founder and chairman of Haidilao, is now estimated by Forbes at $15.2 billion.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.