ShuihuiTuan, the community-based retail e-commence platform announced on January 9, 2020 that it completed a new round of financing, where INCE Capital participated as a lead investor.
This financing round secured US$88.3 million. Investors include: Joy Capital, INCE Capital, Qiming Venture Partners, Alibaba, ZhenFund and China Growth Capital.
Steven Hu（胡斌）, a Founding Partner of INCE Capital, says: despite the voice of doubts towards the community-based retail model in the past, two factors - first, its inherently lower costs in traffic acquisition and maintenance; second, the more economical fulfillment costs compared to other models - determine its naturally stronger potential in profitability and expansion. It is the choice by sector competition. In addition, the philosophy and experience of the ShihuiTuan team in the supply chain area, convinces us of the team’s long-term vision to make the company big. Lastly, although the business model does not have high barriers against competitions in smaller regions, it is very difficult to copy on a country level, similar to group-buying in the past. Therefore, the competence of the CEO and the team in operation executions, comprehensive management, acquisition and integration, and capital operations will decide largely how far the company can go. Just as always, we believe that the founder Chen Ying and his team have the opportunity to build a new landscape of China's retail trade in the future.
ShihuiTuan is a community-based retail e-commerce platform focusing on fresh food, fruits and vegetables, and household items. Building on communities, it targets the daily household consumer scenarios, and strives to develop second- and third-tier city markets.
ShihuiTuan says that the proceeds will be used to strengthen investment in supply chain and technology, further build the industrial chain, accelerate its presence in lower-tier markets, so that more urban families can access the fresh products and convenient service brought by community group purchase. The company will work together with top players to drive the long-term development of community group purchase.
On August 30, 2019, ShihuiTuan just completed the merger with another platform "NiWoNin", which is dubbed the first merger case in community group purchase. After the merger, ShihuiTuan emerged as one of the most competitive and leading brands in China’s community-based retail business. By the time of the merger, Chen Ying, Co-founder and Co-CEO of ShihuiTuan, announced this sensational case of the industry to all employees in an internal letter, in which he also outlined the organizational structure of the new ShihuiTuan and its outlook of growing into a 100 billion RMB company.
Regarding the latest round of financing, Chen Ying also expressed his recognition of the long-term value of the community group purchase model in an internal letter. He pointed out that community group purchase is the e-commerce model for fresh food that can generate profits at scale. It is complementary to the traditional model and will upgrade into the new community retail model. As a “new retail” company with strengths in consumer technology and genes of Internet business, ShihuiTuan is representing the future.