Private equity firm KKR has invested USD 40 million in Xingsheng Selected, a fresh produce chain that operates small stores in neighborhoods, 36Kr reported Thursday.
In this deal, the company which is headquartered in Changsha, the capital of Central China’s Hunan province, was valued at USD 700 million.
Xingsheng Selected has already got funding from Capital Today and Tencent, both of which also back Yipien Fresh, another online-to-offline fresh produce store chain.
Xingsheng now has a presence in 12 provinces, expanding fast from its home turf Hunan province, according to its official WeChat account.
The company features a group-buying model, under which a so-called group-buying leader gathers some residents living close to one another to a WeChat group to participate in flash sales of vegetables or fruits.
This leader will introduce specialties at discounted prices to the WeChat group participants so that they can grab goods and make an order online instantly. They can pick up their produce at one of the Xingsheng Selected stores or wait for them to be delievered.
The company has also a WeChat mini program allowing direct buying.
Currently, small cities and townships are places where Xingsheng is seeking growth.
Xingsheng’s Gross Merchandise Value, a term used to indicate total sales for an online e-commerce site, has increased from RMB 80 million (USD 11.6 million) in September 2018 to nearly RMB 700 million in June 2019, according to 36Kr.