MissFresh, a Chinese E-commerce grocery start-up, completed its latest round of funding with a valuation of US$3 billion in May 2020.

Xu Zheng founded Missfresh in seven years ago. It is an e-commerce mobile platform that offers fresh food groceries online and home-delivers them within one hour. MissFresh currently serves nearly 25 million customers across China. It is backed by major angel investors like Tencent Holdings Ltd and U.S. investment bank Goldman Sachs.

MissFresh has not yet commented on this funding and has not disclosed the investors publicly. In its last round of funding, Missfresh raised US$450 million. The round was led by Tencent and Tiger Global Management. Till now, Missfresh had raised US$900 million overall through investors like Jeneration  Capital and Genesis Capital. Tian Jiangxue, the deputy head at Tencent, announced that over the last one and a half years, Tencent’s Mini-Program helped MissFresh reduce costs by 30 percent and increase overall gross merchandise volume by four times.

In 2019, MissFresh announced its plan to earn 100 billion yuan (US$14 billion) in revenue by 2021. The founder and CEO of MissFresh, Xu Zheng said that the company is confident of the plan over the next year three years as it has 1,500 front-end warehouses in 20 cities across the country. “One of our future priorities is to boost our front-end warehouse, which is vital in determining competitiveness for online fresh food platforms,” Xu explained.

Due to COVID-19 and the lockdown, most people in China are ordering fresh groceries online instead of going out to purchase them from retailers. This increase in demand has resulted in exponential growth for MissFresh as it expects to receive more than $500 million in expansion financing.

The funding from the latest round will help Missfresh grow even stronger during tough times in the venture capital market.

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China’s MissFresh completes round of funding with US$3 billion valuation