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.