Xingsheng Youxuan operates a community group‑buying online grocery platform that aggregates orders for discounted grocery sales. The company was an early entrant to the sector and has grown a footprint across 1,100 cities and 70,000 rural towns in 17 provinces. In 2020 its platform recorded gross merchandise value (GMV) of RMB 40 billion (USD 6.3 billion) and it set a target of RMB 80 billion (USD 12.4 billion) for the year. For the first six months of 2021 its average monthly GMV was RMB 3 billion, indicating it is behind schedule on growth targets. The business faces sectorwide headwinds — daily GMV across the industry fell from more than RMB 200 million to RMB 150 million in May — and rising operating costs amid tougher competition from internet giants. The company has raised capital across multiple rounds to sustain operations and scale logistics and supply‑chain efficiency. Xingsheng Youxuan operates a community group-buying grocery service that delivers online bulk orders to offline stores located inside or near residential communities. Headquartered in central China's Hunan province, the company runs its service in 13 provinces and municipalities, covering more than 6,000 counties and over 30,000 towns. It reported more than 8 million daily orders and an estimated gross merchandise value of 40 billion yuan in 2020. Demand for its service has surged amid COVID-19 social distancing, which has driven more consumers to order groceries from home. The sector faces increasing regulatory scrutiny, with authorities saying they will tighten oversight of community group buying and urging internet giants not to compete with unreasonably low prices. The company is backed by investors including Tencent and Tiger Global, and previously received a $700 million investment from JD.com in December. Xingsheng Youxuan operates a community group-buying platform that aggregates neighborhood orders for fresh produce and daily essentials, with designated group leaders buying in bulk and coordinating distribution. The business began as a chain of community-focused convenience stores before launching its group-buying service. Its model reduces per-customer delivery costs by delivering to group leaders and leveraging scale advantages versus door-to-door online grocery delivery. That efficiency has driven rapid uptake but prompted pushback from food manufacturers, wholesalers and supermarket chains seeking to restrict partnerships with group-buying platforms. Financing activity has been significant: the company raised $200M from KKR and others in September 2019 and a $46M capital injection led by Tencent in May 2019; reports also say it raised $800M earlier this year from KKR, Sequoia and others (not publicly confirmed). Most recently JD agreed to invest close to $700M under a preferred-share purchase agreement, according to an SEC filing. Xingsheng Youxuan (Xingsheng Selected) operates a community group-buying platform that offers groceries at bargain prices to residents who live near each other. The company was founded in 2018 as the e-commerce unit of local supermarket chain Furong Xingsheng and is headquartered in Hunan province. It is described as Tencent-backed and competes with rivals such as Alibaba-backed Nice Tuan. Xingsheng is set to complete a C+ financing round worth USD 800 million led by KKR. The post-investment valuation reached USD 4 billion, four times its valuation a year earlier. An initial public offering will likely follow the latest financing, according to the report. Xingsheng Selected operates a fresh-produce chain of small neighborhood stores and relies on a community group-buying model. Customers purchase via WeChat groups led by a group-buying leader or through a WeChat mini program, with orders picked up at stores or delivered. The company is headquartered in Changsha and has expanded from Hunan into 12 provinces, targeting growth in small cities and townships. Investors include Tencent and Capital Today. Gross merchandise value grew from RMB 80 million (USD 11.6 million) in September 2018 to nearly RMB 700 million in June 2019. The company was valued at USD 700 million in the KKR deal.

Total raised

$3.8B

Funding rounds

5

Latest round

Equity

Latest activity

Jul 2021