Tencent-backed Chinese grocery delivery startup Missfresh seeks to raise $500m

Tencent Holdings Ltd.-backed grocery delivery startup Missfresh is seeking up to $500 million of new funding to help tide it over tougher times, according to people familiar with the matter.

Beijing Missfresh Ecommerce Co., which also counts Goldman Sachs Group and Tiger Global Management as backers, is looking to fetch a valuation of at least $3 billion, the people familiar said, requesting not to be named because the matter is private. The company plans to raise $300 million to $500 million at a valuation of as much as $4 billion, one of the people said.

The plans are preliminary and subject to change the people added. Missfresh declined to comment about the fundraising details in a text statement.

A slew of Chinese startups are racing to replenish their war chests before what many foresee as painful times brought on by a slowing economy and market uncertainties unleashed by the trade war. Missfresh — born out of an unprecedented tech boom in China — is competing in a sector of heavy cash burn that has attracted titans including Alibaba Group Holding Ltd.

The five-year-old company has more than 1,500 mini-warehouses that promise deliveries as fast as within one hour, it said in a statement. Missfresh had nearly 25 million monthly active users as of May. It handled 10 billion yuan ($1.5 billion) worth of transactions last year and had generated positive cash flow by the end of 2018, the company said in a statement.

If Missfresh’s attempts at fundraising are successful, it could help the company prepare for testing times. Venture deals in China tumbled 77% to $9.4 billion in the second quarter from a year earlier, while the number of deals roughly halved to 692, according to the market research firm Preqin.

After eight rounds of fundraising to date, Beijing-based Missfresh has raised a total of nearly $900 million from investors including Jeneration Capital and Genesis Capital, the company said.

Bloomberg

Singapore Reporter/s

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

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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.