Saturday, July 13, 2024
HomeBusinessDingdong Maicai, a Chinese Grocery App, raises $100M in Funding

Dingdong Maicai, a Chinese Grocery App, raises $100M in Funding

Advisor of Cygnus Equity recently informed that amid a surge of fundraising in the sector, Dingdong Maicai, a Chinese grocery app, has secured a raise of $330 million. The boutique Chinese investment bank, Cygnus was the advisor of Dingdong Maicai’s in both rounds and also invested in the April 2021 round. This funding is called the D-plus round of fundraising and was led by the SoftBank Vision Fund. Following this, the vegetable eCommerce platform completed a $700 million D round bringing the total fundraising to over $1 billion.  

Dingdong Maicai was established in the year 2017. Its investors include Sequoia Capital China and Tiger Global Management. It was operated by Shanghai Yibaimi Network Technology and delivered fresh produce to users in 29 Chinese cities, including Beijing, Guangzhou, Shanghai, Shenzhen, and others. It witnessed an impressive surge in sales during the COVID-19 pandemic and recorded over 850,000 orders per day. The monthly revenue of the startup mounted to 1.5 billion yuan ($229 million).

The pandemic-induced demand for home delivery of groceries had led to a boost in this crowded sector. The online delivery platforms in China have seen a surge in investment. Even delivery giants like Meituan raised an impressive $10 billion.

The online delivery system for groceries was already making a mark, but ever since the pandemic hit, fresh produce is being viewed as a hot sector. The industry giants like Alibaba Group and Pinduoduo are stepping up their offerings inspired by the vast market potential and high-frequency consumption. However, how the startup will use the funds has not been cleared yet. The latest funding round will likely spruce up its supply chain. The company has previously announced that they are considering an initial public offering in the U.S. to initiate the expansion in a cut-throat fresh food delivery market.           

Popular posts

My favorites

I'm social