Local service provider and group-buying platform Tongcheng Shenghuo closed its Series B round collecting USD 100 million, 36Kr reported Friday.
Tongcheng Shenghuo, founded in January 2018, was once an internal product incubated by the US-listed online travel agency Tongcheng. It allows people living in the same neighborhood to group-buy fresh fruit, vegetables, meat, and other fresh products.
Legend Capital led this round, while earlier investors include Bertelsmann Asia Investment Fund, Yilian Capital and Tongcheng Capital. The valuation of this startup, which runs mostly in East China and South China, has not been disclosed.
Shao Zhenxing, a partner of the leading investor Legend Capital, said the investment represents his company’s bet in the field of social e-commerce. The group-buying startup makes good use of WeChat’s chatting groups and its mini program to reach consumers living close to each other, added Shao.
Tongcheng founder and chairman Wu Zhixiang told 36Kr in an earlier interview that China’s fresh produce market is worth RMB 5 trillion (USD 702 billion), and added that several companies with yearly revenues of up to RMB 10 billion (USD 1.4 billion) will emerge in this business.
Tongcheng Shenghuo’s recent revenue has not been revealed yet.