CICC leads US$495 million funding for Tencent-backed online grocer MissFresh

The latest financing round for Beijing-based MissFresh was said to be on track to value the start-up at about US$3 billion

MissFresh competes in a cash-burning sector with deeper-pocketed companies including Alibaba and JD.com

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Consumers sheltering at home during the Covid-19 pandemic have reinvigorated a once-difficult online groceries market in China. Photo: Shutterstock

Published: 6:59pm, 23 Jul 2020Updated: 7:04pm, 23 Jul 2020

Tencent Holdings-backed MissFresh closed US$495 million of financing from backers led by China International Capital Corp, underscoring strong investor interest in online commerce and groceries during the Covid-19 pandemic.

The Beijing-based online grocer also attracted Goldman Sachs’ asset management arm, Tiger Global Management, the Industrial and Commercial Bank of China and Abu Dhabi Capital, as one of several online services that thrived during nationwide lockdowns.

The financing round was on track to value the start-up at about US$3 billion before investment, people familiar with the deal have said.

Beijing MissFresh Ecommerce Co – one of dozens of start-ups Tencent backed during China’s internet boom – is competing in a cash-burning sector with deeper-pocketed companies including Alibaba Group Holding and JD.com. Alibaba is the parent company of the South China Morning Post.

Consumers sheltering at home during the pandemic have reinvigorated a once-difficult groceries arena, and Missfresh now needs ammunition to attack a Chinese online fresh foods sector that could reach US$178 billion by 2025.