Alibaba is, again, investing in Yiguo. The newest $300 million round, led by Alibaba, is the fourth round Alibaba is investing with into Yiguo.
Alibaba Group said Thursday it led a $300 million, D-round investment in Yiguo.com, China’s largest B2C fresh produce online marketplace.
Yiguo delivers perishable goods, such as fruits, vegetables, meats and fish to more than 200 cities in China, offering most of its customers second-day home delivery. Shoppers in major cities such as Beijing, Shanghai, Guangzhou and Chengdu receive their purchases on the same day. The funding, Alibaba’s fourth injection of capital into the grocery-shopping platform, will be used to further develop Yiguo subsidiary ExFresh, China’s largest cold-chain logistics platform.
Alibaba said it plans to leverage ExFresh to expand its delivery reach and gain better control of its distribution and logistics while allowing its Tmall Supermarket division to work more closely with Yiguo, the Hangzhou, China-based company said. Alibaba would also be able to ensure faster delivery of the fresh-food imports increasingly sought by Chinese consumers.
Yiguo’s infrastructure helps Tmall with food deliveries:
Alibaba Group Vice President Jet Jing said the partnership between Tmall and Yiguo had already improved Alibaba’s supply-chain services, bringing premium produce from over 147 countries, such as the U.S., Argentina, Norway, Australia are to Chinese consumers.
“With the integration between Tmall and Yiguo, ExFresh will be able to provide even better cold-chain services for fresh-food vendors,” he said. “The tie-up would drive a better shopping experience for customers.”
ExFresh currently handles 200,000 orders a day, Yiguo said. With the latest round of investments, Yiguo will use the funds to expand the subsidiary’s infrastructure so that it can process the 500,000 daily orders expected by the end of this year and up to 5 million orders in 2020.
China Money Network on Yiguo:
Founded in 2005, Shanghai-based Yiguo.com operates its own network of independent cold chain logistics facilities covering 310 major cities in 27 provinces. It has established 11 cold chain logistics centers in 10 cities, including Beijing, Shanghai, Guangzhou and Hangzhou.
The company guarantees one-day delivery in the cities of Beijing, Shanghai, Guangzhou and Chengdu, and two-day delivery in over 200 cities, according to a company announcement.
Alibaba has participated in the three of four previous funding rounds in Yiguo.com.
One competitor, who is going it alone, is JD and its JD Daojia. Last year, JD Daojia merged with Dada, a P2P delivery network. (comparable to Instacart, Amazon Flex and the likes) At the time of the merger, Dada operated 1.3 million couriers in 37 cities.
More on this topic:
* The Two Reasons Why Alibaba Is About to Invest in South Korea’s Coupang
* Alibaba and JD.com Are Bidding Against Each Other to Invest in Indonesia’s Tokopedia
* Alibaba, Chinese VCs & Chinese Startups Are Working on Amazon Go-Like Stores
* Alibaba’s Echo-Like Speaker ‚Tmall Genie‘ and the Future Chinese Voice Market