The Next Big Thing

Chinese food delivery start-up valued at US$3 billion after gobbling up US$630m in funding

PUBLISHED : Monday, 31 August, 2015, 11:34am
UPDATED : Friday, 04 September, 2015, 12:50pm

A China-based food delivery platform has been valued at a staggering US$3 billion following a US$630 million financing round.

Citic Private Equity Funds Management and Beijing Hualian Group Investment led the Series F funding in Shanghai start-up

The deal also includes further investment from existing shareholders Tencent, and Sequoia Capital.

Founded in 2009 by students from Shanghai Jiatong University, – "are you hungry?" in Chinese – is one of China's largest food ordering platforms with around 40 million users. It's turnover last year was 7 billion yuan (US$1.1 billion).

Online-to-offline food services are a hot market in China with a number of different companies competing to deliver everything from roast duck to pizza.

A recent report by Beijing-based consultancy Analysys International estimated that customers spent upwards of 12 billion yuan on food delivery platforms in the first half of 2015.

In January, raised US$350 million in Series E funding lead by Tencent.

Daily transactions on the app top 60 million yuan (US$9.4 million) with 98 per cent of orders made on smartphones.

Most of the company’s business partners are small restaurants in first-tier cities like Beijing or Shanghai. The company has said it plans to improve its infrastructure to boost its delivery service.’s closest competitor,, China’s largest group buying site and a provider of food-delivery services, has seen a similar interest from investors, raising US$700 million in Series D funding in January.

Intense competition between Tencent-backed and Alibaba-supported Meituan saw large discounts offered to pull in new customers in the latter half of 2014, including pizzas for as little as 1 yuan.