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KEY STAT | China’s neighborhood group-buying players double 2021 targets as competition intensifies

Written by Julianna Wu Published on     1 min read

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Chinese startups Xingsheng Youxuan and Nice Tuan are raising funds to compete with the likes of Meituan, Pinduoduo, and Didi.

The growth of China’s community group-buying industry continues unabated. Meituan Youxuan, the grocery retail business of on-demand giant Meituan (HKEX: 3690), now aims for an annual gross merchandise volume (GMV) of RMB 200 billion (USD 31 billion) and daily order volume targets of between 50 and 60 million this year, according to a 36Kr report.

After Chinese New Year, its daily order volume hovered at just around 23 million, reaching 27 million on its busiest day, people familiar with the business told 36Kr.

Other major players in the sector have also doubled their projections after the Chinese New Year, hinting at an intensifying competition. Pinduoduo’s (NASDAQ: PDD) Duoduo Maicai, Didi’s Chengxin Youxuan, and upstart Xingsheng Youxuan are looking at GMV targets of RMB 150 billion (USD 23 billion), RMB 100 billion, and RMB 80 billion, respectively.

Just last week, Alibaba-backed group-buying startup Nice Tuan bagged USD 750 million in Series D money, raising more in one go than all of its previous rounds combined.

Frequent big-ticket fundraising moves by Nice Tuan and Xingsheng Youxuan suggest that investors believe they are the only remaining rising stars that can still compete with the likes of Meituan, Didi, and Pinduoduo, said 36Kr.

Read this: TECH PANO | Tech is changing China’s grocery shopping for good

This article is part of KrASIA’s Key Stat series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.

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