Tencent-backed Grocery Startup Missfresh Seeks New Funds

The Beijing-based company hopes to raise between $300 million and $500 million to reach a valuation of at least $3 billion.

Author: Binwei Wang   

Grocery delivery startup Missfresh, backed by Chinese tech giant Tencent Holdings Ltd. (HKEX: 0700), is reportedly seeking up to $500 million in new capital to withstand tough times.

The Beijing-based company, which sells products online across China, hopes to reach a valuation of $3 billion with a fundraising of between $300 million and $500 million, as reported by Bloomberg citing unnamed sources.

Beijing Missfresh E-commerce has Tencent, Tiger Global Management and Goldman Sachs among its shareholders. 

Currently, a number of Chinese startups are seeking new funds as tough times set in amid a slowing economy and market uncertainties. Missfresh was launched in a sector of heavy cash burn that has attracted titans including Alibaba Group Holding Ltd. (NYSE: BABA).

If this fundraising is successful, it could help the company prepare for the near-term future. Missfresh said, after eight rounds of fundraising to date, it has raised a total of nearly $900 million from investors including Jeneration Capital and Genesis Capital.