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CHINA BRIEF | Tencent-backed grocery app Xingsheng Youxuan to close USD 800 million pre-IPO round

Xingsheng Youxuan leverages group-buying to provide groceries at bargain prices to residents who live near to each other.

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Community group-buying platform Xingsheng Youxuan (or “Xingsheng Selected”) is set to complete a C+ financing round worth USD 800 million, led by existing backer KKR, with the participation of big-name investors including Sequoia China, Tencent, and China Renaissance, local tech media outlet 36Kr reported on Wednesday.

The post-investment valuation reached USD 4 billion, four times the startup’s valuation one year ago when it bagged USD 40 million from KKR. An initial public offering will likely follow the latest financing round, 36Kr wrote, citing sources close to the firm.

Xingsheng Selected, founded in 2018 as an e-commerce unit of local supermarket chain Furong Xingsheng, headquartered in Hunan province, leverages a group-buying model that provides groceries at bargain prices to residents who live near to each other.

Players in the pandemic-boosted fresh produce sector are nabbing big bucks. Xingsheng Selected’s rivals include Alibaba-backed Nice Tuan, which in June announced a USD 81.4 million C1 round led by GGV Capital, Tongcheng Life, and Miss Fresh.

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.