CHINA – Yonghui Fresh Food, a produce-based B2B subsidiary of leading Chinese supermarket group Yonghui Superstores, has raised US$153 million in a funding round jointly led by Chinese tech giant Tencent and leading Chinese investment banking firm CICC.

Yonghui Fresh Food was also able to attract investment from other investors inkling China Merchants Bank, Minsheng Equity Investment Fund, and Greenwood’s Investment.

The company’s parent company Yonghui Superstores and other exisiting investors including Asia- focused PE firm Hillhouse Capital and Sequoia Capital also particiapated in the funding round.

Founded in 2011, the Shanxi based fresh produce service provider leverages its 9 processing factories and regional food warehouses to distribute fresh groceries to corporates and retailers.

The company has seen tremendous growth in its business over the years.

In 2018, its successful business model attracted a US$145 series A funding from a consortium of investors including Yonghui Superstores, Hillhouse, and Sequoia.

The food distribution platform recorded about US$471 million in sales revenue in the first 9 months of 2020, according to a recently released financial report.

The company also reports to have assets that are in excess of US$294 million under its management.

Following the recent transaction, Yonghui Supermarkets which was set up in 2001 in Fuzhou city remains its largest shareholder with a 32.33 percent.

Yonghui primarily operates supermarket business in China and is listed in the Shanghai stock exchange where it has a market valuation that is in excess of US$11 billion.

Other major shareholders in the company include Hillhouse Capital and Sequoia Capital China which have a 26.80 and 13.40 percent equity interest resepectively.

Following their significant investment in the company, Tencent, CICC Qizhi, Minsheng, China Merchants, and Greenwoods will now become the other majority investors in the company with a 0.40 percent stake each.

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