What’s new: Chinese grocery app Dingdong Maicai raised $330 million in its latest round of fundraising led by Softbank Group’s Vision Fund.
Dingdong said it will use the money to expand its business network and invest in supply chains and team building. The grocery app is increasing investment in developing a smart fresh supply chain system to compete in the white-hot market.
Including this round of fundraising, Dingdong added a total of $1.03 billion to its war chest in the past two months. In early April, the startup secured $700 million of funding from investors including DST Global and Coatue Management. The company was valued at $1.5 billion in a prior fundraising.
The background: Established in 2017 in Shanghai, Dingdong is backed by venture capitalist Sequoia Capital China. It is competing with platforms operated by Alibaba Group Holding Ltd., JD.com Inc. and Pinduoduo Inc. in the country’s crowded online grocery sector, which has exploded since last year.
Bloomberg reported in February that Dingdong was working with advisers on an initial public offering in the U.S. as soon as this year. Dingdong has expanded its operations to 29 cities including Beijing, Nanjing and Guangzhou.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
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