Xingsheng Youxuan to Complete a New USD 3 Billion Round of Financing

According to Latepost, Xingsheng Youxuan, a community group buying start-up company, is going to complete a funding round of USD 3 billion led by Sequoia Capital, followed by Tencent, Fangyuan Capital, Temasek, KKR, DCP, Chunhua Capital and Evergrande.

Founded in 2018, Xingsheng Youxuan adopts the community group buying mode of 'pre-sale + self pick-up' and relies on the community convenience stores to provide users with vegetables, fruits, meat, poultry, aquatic products, daily necessities and other commodities. As a new Internet retail platform, Xingsheng Youxuan started from Hunan and takes the Hunan market as its base. By the end of 2020, the order volume reached 10 million, accounting for two-fifths of the total volume. At present, the market has expanded to 13 provinces and municipalities directly under the central government. The transaction volume of Xingsheng Youxuan reached CNY 40 billion in 2020.

Prior to this, Xingsheng Youxuan has obtained several rounds of financing. According to Tianyancha app, the firm received tens of millions of dollars in Series A financing from Today Capital, Jinshajiang Venture Capital, Zhenge Fund, etc in October 2018; the company established a strategic partnership with Tencent in May 2019 with an undisclosed amount of financing; in July 2019, Xingsheng Youxuan received about USD 40 million in a KKR strategic financing; in September 2019, Xingsheng Youxuan received more than USD 200 million in Series B financing. In July 2020, Xingsheng Youxuan raised USD 800 million in Series C financing, led by KKR, followed by Sequoia China, Tencent, Today Capital, Huaxingxin Economic Fund and Zhongding Capital. After this round of financing, Xingsheng Youxuan's valuation reached USD 4 billion. The firm's latest round was raised in December 2020 worth USD 700 million from Jingdong.

Since 2018, community group buying has gradually become a retail outlet. Under the influence of the pandemic in 2020, the community group buying fever will rise again, and companies like Alibaba, Jingdong, Meituan and Pinduoduo will enter the market one after another. In June 2020, Cainiao's Posthouse group-buying cooperated with RT mart, Auchan and other national chain stores; in July, Meituan announced that it will enter the community group buying market and set up its own preferred business unit; during the same month, Alibaba retail business unit planned to set up a new community group buying department; in August, Pinduoduo launched 'Duoduo buy vegetables' and joined the community group buying.