Chinese fresh produce e-commerce platform MissFresh has closed a $450 million funding round led by Goldman Sachs Investment Partners and Tencent Holdings, according to a statement by the platform’s financial advisor China Renaissance.
The round is also joined by Hong Kong-based investor Jeneration Capital Management, US-based investment firm Davis Selected Adviserm Poly Capital Holdings Ltd, and existing investors including Tiger Global Management and Sofina.
MissFresh will use the proceeds to expand the company’s supply chain and develop cold chain logistics, a process of storing and transporting in a temperature-controlled environment, as well as smart technology.
“MissFresh plans to march into 100 cities in China. We expect to provide fresh food products to 100 million families with a one-hour delivery service,” said Xu Zheng, founder and CEO of MissFresh.
While Tencent Investments managing partner and general manager of Tencent M&A, Jeffrey Li commented: “MissFresh is the leader of the fresh e-commerce track, and continues to strengthen the supply chain and customers relation, relying on strong innovation and execution, while scaling rapidly. As an investor since Series A round, Tencent will continue to maintain close cooperation with MissFresh to jointly explore and promote innovation in the retail segment.”
According to a Chinese report, the fresh product e-commerce sector’s compound annual growth rate will hit 49 per cent in the next three years, as internet penetration grows to 27.1 per cent by 2020. Citing statistics from TrustData, MissFresh claims that its market share has exceed 50 per cent for the first half of 2018 and has been in the industry leader position for four consecutive quarters.
China Money Network reported that MissFresh had raised a $500 million Series D in an undisclosed round last December, slightly more than a month after it raised a $230 million Series C+ round led by Tiger Global Management and Genesis Capital.
Founded in November 2014, Beijing-based MissFresh currently provides service across 20 Chinese cities. It offers fresh food products such as milk, meat, seafood, fruits and vegetables on its mobile platform with an under 1-hour delivery promise for its users.