Chinese shopping app Dingdong Maicai has successfully raised $330 million. The specialized Chinese investment bank Cygnus advised Dingdong Maicai during both rounds and participated in the April 2021 round as an investor.
The SoftBank Vision Fund served as the fundraising leader for this round, known as the D-plus round. Afterward, the eCommerce platform for vegetables finished a $700 million D round, increasing the total amount raised to almost $1 billion according to the Chinese grocery app dingdong maicai 500m us IPO wureuters.
2017 saw the establishment of Dingdong Maicai. Sequoia Capital China and Tiger Global Management are a couple of its investors. Shanghai Yibai Network Technology delivers fresh food to customers in 29 Chinese cities, including Beijing, Guangzhou, Shanghai, Shenzhen, and others.
During the COVID-19 epidemic, it experienced an extraordinary increase in sales and averaged over 850,000 orders daily. The startup generated 1.5 billion yuan ($229 million) in monthly sales.
This overcrowded industry saw a rise in demand for grocery delivery due to the epidemic. China’s online delivery services have seen a rise in investment. Even the biggest names in delivery, like Meituan, raised a respectable $10 billion.
The grocery delivery system online was previously a success, but since the pandemic, fresh food has gained popularity.
Due to the enormous market potential and high-frequency consumption, industry titans like Alibaba Group and Pinduoduo are expanding their product lines. However, it is still unclear how the business will use the money.
The most recent round of money will probably improve its supply chain. The business previously said that it was thinking of conducting an initial public offering in the U.S. to fund entry into the competitive fresh food delivery sector.
The size of SoftBank’s Vision Fund 2 has expanded from $10 billion to $30 billion. Its inaugural Vision Fund was completed in 2017 with investments from corporate LPs and sovereign wealth funds, closing at $98.6 billion.
However, it has so far been unable to enlist support for its successor, investing the money on its own. Due to the inability of portfolio businesses OneWeb and Brandless to successfully float, WeWork’s unsuccessful IPO, and underwhelming share performance for others like Uber, the inaugural Vision Fund recorded a $16.8 billion net loss during 2019.
The coronavirus outbreak has, however, driven the pre-IPO funding market and prompted tech stocks in various industries to soar, which has significantly reversed SoftBank’s fortunes—the Vision Funds have now generated a $37 billion paper profit.
As of the end of March this year, the combined fair value of Vision Funds 1 and 2 was $154 billion, and SoftBank had paid out $22.3 billion to its limited partners. Better, a US-based provider of digital mortgage services has agreed to a reverse merger at a $7.7 billion post-deal valuation.
In order to take the place on the Nasdaq Capital Market that Aurora secured in a $220 million initial public offering in March of this year, the business will team up with SPAC Aurora Acquisition Corp.
The purchase will be funded by $1.5 billion in PIPE financing from the sponsors of Aurora Acquisition Corp., Novator Capital, and SoftBank’s SB Management affiliate, Activant Capital.
About Dingdong Maicai
A food store and online shopping platform called Dingdong Maicai was established in Shanghai, China, in 2014. Fruits, vegetables, and seafood are its top-selling goods. Dingdong Maicai uses big data to forecast upcoming orders using his own data models and previous sales information.
Around Shanghai, Dingdong has constructed more than 200 “front warehouses,” which are modest warehouses filled with goods. Having 1-3 sizable warehouses farther away from client bases is an alternative to front warehouses.
About SoftBank Vision Fund
A division of the SoftBank Group, SoftBank Vision Fund focuses on growth capital and investments with a social effect.
The Internet of Things, artificial intelligence (AI), robots, communications infrastructure, telephony, computational biology, biotech, cloud technologies, consumer internet firms, financial technology, and mobile apps are among the industries that the fund invests in.
The Fund aims to accelerate technology development in the hopes of enhancing SoftBank’s capabilities and accelerating the shift to SoftBank 2.0. It aspires to invest in companies and key infrastructure that SoftBank expects to transform and innovate the world in the future.
Chinese grocery app
D-plus round of fundraising
SoftBank Vision Fund
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