Chinese on-demand delivery platform Meituan Dianping has led the RMB 600 million (USD 86.4 million) Series B financing round of Guangdong-based agricultural product distributor Wangjiahuan, local tech media 36Kr reported on Monday.
The company’s existing shareholder Hidden Hill Capital also participated in the round.
Proceeds of this round will be used to expand Wangjiahuan’s businesses across China, establish urban distribution centers and product procurement platforms, and improve the product’s quality, the company announced.
“As an industry leader in the group meal delivery sector, Wangjiahuan has advantages in terms of bidding, supply chain, and funding. Meituan is looking forward to this partnership with Wangjiahuan, and expects the company to have a broader expansion across China in the next three years,” said Meituan’s senior director of investment Zhou Yu.
Founded in 1995, Wangjiahuan, known as a major competitor of Meicai, provides agricultural products, processing and distribution, and catering services. It has over 130 branches and subsidiaries with over 20,000 corporate and institutional clients including schools, hospitals, restaurants, and supermarkets.
36Kr is KrASIA’s parent company.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.