Yonghui Fresh Food, the fresh produce-based business-to-business
(B2B) platform of Chinese leading supermarket group Yonghui
Superstores, has secured a corpus of 1 billion yuan ($153 million)
in a strategic investment jointly led by Chinese tech giant Tencent
and CICC Capital’s sub-fund CICC Qizhi, per a company filing
with the Stock Exchange of Shanghai on Friday.
China Merchants Bank, Minsheng Securities’ PE vehicle Minsheng
Equity Investment Fund Management, and Shanghai-
headquartered asset manager Greenwoods’ investment arm
Greenwoods Investment joined the latest round as new investors.
Existing investors including Yonghui Superstores — the parent
company of Yonghui Fresh Food — Asia-focused PE firm
Hillhouse Capital, and Sequoia Capital China re-upped in the
round.
In 2018, Yonghui Superstores, Hillhouse, Sequoia and others had
teamed up seeding 950 million yuan ($145 million) in a Series A
round funding in Yonghui Fresh Food.
Upon completion of the transaction, Yonghui Superstores will
remain as the largest shareholder in Yonghui Fresh Food holding a
32.33 per cent stake, down 2.67 per cent. Hillhouse Capital and
Sequoia Capital China will remain as the second- and third-largest
shareholders with 26.80 per cent and 13.40 per cent equity interest,
respectively.
Besides, Tencent, CICC Qizhi, Minsheng, China Merchants, and
Greenwoods will be among its majority shareholders with 0.40 per
cent stake each.
Established in 2011, Northwest China’s Shanxi province-based
Yonghui Fresh Food is a one-stop fresh produce service provider. It
leverages its nine fresh produce processing factories and regional
food warehouses in the country to distribute fresh groceries to
corporates and retailers.
The platform clocked 3.08 billion yuan ($471 million) in sales
revenue in the first nine months of 2020; it has 1.9 billion yuan
($294 million) in assets under management.
Its largest shareholder Yonghui Superstores, which was set up in
2001 in Fuzhou city, in China’s Southeast, primarily operates a
supermarket business in China. It got listed in Shanghai in 2010,
and its market valuation stood at 69 billion yuan ($11 billion) as of
December 10.
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