Chinese fresh produce delivery service, Missfresh has raised $495 million in a new funding round led by CICC Capital, as China’s e-commerce market is appreciating a meteoric momentum during the coronavirus pandemic.
The new round, which signifies one of the largest investments in China’s fresh produce delivery field, was backed by Tencent, Goldman Sachs Asset Management, private institutional investment house Abu Dhabi Capital Group (ADCG), and Tiger Global Management, said China Renaissance, the exclusive financial adviser of the deal, in WeChat post on Thursday.
Hong Kong-based ICBC International, a wholly-owned subsidiary of Chinese state-owned Commercial Bank ICBC, and a government-led industry fund in eastern China’s Suzhou City, as well as other institutional investors also participated in the funding round.
Beijing-based Missfresh did not disclose its post-money valuation. But the company was valued at about $3 billion before the transaction, stated earlier. The new financing will help Missfresh raise stakes in China’s highly-competitive fresh produce e-commerce market, which is estimated to present a 62.9 percent growth rate this year as consumers refrain from dining out during the pandemic.
“China Fresh produce delivery has moved on from the first development period of claiming markets by preemptive investment, to the second phase with equal stress on the high consumer penetration rate and quality business operations.” Said Wang Jun, CFO of Missfresh in the post.
“The proceeds will be used to finance the construction of Missfresh’’s intelligence chain store technologies and the development if supply chain capabilities,” said Wang.