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2020 Fresh Food Industry Financing Review: Who will be the next capital darling?

Financing situation: On January 6, 2020, Food Chain, an imported seafood retail supply chain company, completed tens of millions of yuan in Series B financing. The investors were SF Express, STO, YTO, and ZTO Fengwang Investment, founded jointly with Yunda's five leading express delivery companies, led the investment.

Summary of the event: The main direction of the food chain is B2B imported seafood. It has established its own brand of Huanqiu Fish Market, created a single product of frozen shrimp, and quickly entered the C-end market. At present, the food chain has established a fresh food direct supply network in 4 countries around the world, with more than 100 seafood categories, and the annual transaction scale of the platform exceeds 2 billion.

This round of financing for the food service chain will be mainly used in three aspects: continue to delve into the upstream of the supply chain; comprehensively optimize the supply chain and improve cost advantages; increase investment in brands and expand the scale and influence of the enterprise force.

Comments: China’s fresh food imports maintain an annual growth rate of approximately 40%. However, the price sensitivity at both the upstream and downstream ends of the overseas fresh food supply chain is very high, and the cost control ability of supply chain enterprises is very critical. With the help of Fengwang’s investment and strong logistics genes, the logistics level of the food chain will be rapidly improved in the future.

Financing situation: On January 9, 2020, the community fresh food group buying e-commerce platform Shihuituan stated that it had completed a new round of financing. The amount of this financing was US$88.3 million, and the investment was Alibaba , Ce Capital, Joy Capital, Qiming Venture Partners, Zhen Fund and Hua Chuang Capital.

Summary of the event: The previous merger of Shihuituan and "You Me You" was known as the first case of community group buying merger. After the merger, the monthly sales of Shihuituan was 500 million yuan, covering More than 50 cities. With this financing, Shihuituan will use it to increase investment in supply chain and technology, deepen the construction of the industrial chain, and accelerate its layout in the sinking market.

Comments: The highlight of this round of financing is Alibaba. The integration of e-commerce genes and social genes will make Shihui Group as powerful as a tiger in the future. Alibaba has made great strides in the field of fresh food. With capital, it has acquired Intime, Suning, Sanjiang Shopping, Bailian Group, Lianhua Supermarket, Xinhuadu and Sun Art Retail; it has entered the battlefield with Hema Fresh and Dishes. , Alibaba is destined to win the fresh food industry.

Financing situation: On January 9, 2020, Shihuituan, a community fresh food group buying e-commerce platform, stated that it had completed a new round of financing. The amount of this financing was US$88.3 million, and the investment was Alibaba , Ce Capital, Joy Capital, Qiming Venture Partners, Zhen Fund and Hua Chuang Capital.

Summary of the event: The previous merger of Shihuituan and "You Me You" was known as the first case of community group buying merger. After the merger, the monthly sales of Shihuituan was 500 million yuan, covering More than 50 cities. With this financing, Shihuituan will use it to increase investment in supply chain and technology, deepen the construction of the industrial chain, and accelerate its layout in the sinking market.

Comments: The highlight of this round of financing is Alibaba. The integration of e-commerce genes and social genes will make Shihui Group as powerful as a tiger in the future. Alibaba has made great strides in the field of fresh food. With capital, it has acquired Intime, Suning, Sanjiang Shopping, Bailian Group, Lianhua Supermarket, Xinhuadu and Sun Art Retail; it has entered the battlefield with Hema Fresh and Dishes. , Alibaba is destined to win the fresh food industry.

Financing situation: On February 25, 2020, Frozen Products Home, which specializes in b2b delivery of frozen products, completed an A3 round of financing of 35 million yuan. This round was led by Meihua Venture Capital, which is not confused by venture capital and Magic Capital also invested.

Summary of the event: Frozen Products at Home is a one-stop service that provides frozen food ingredients to b-end catering merchants. It has more than 8,000 active users, and the repurchase rate of users who place orders in the next month is stable at More than 85%, the annual revenue in 2019 exceeded 500 million yuan. This round of financing for Frozen Products will be mainly used to strengthen the integration and empowerment of upstream factories and market expansion.

Comments: The investors are very optimistic about the frozen product market, and the annual profit of Frozen Products Home is also one of the sources of investors’ confidence. The main direction for the future of frozen food delivery is to accelerate the speed of expansion and get ahead of the trend.

Financing situation: On March 9, 2020, Wangjiahuan stated that it had completed a round B financing of RMB 600 million, and all the funds had been received. This round of investment was strategically led by Meituan-Dianping, and the shareholders Hidden Mountain Capital continues to invest.

Summary of the event: Wangjiahuan, as the number one company in group meal ingredient distribution, has huge first-mover advantages in terms of scale, management and supply chain. It has 200,000 acres of planting and breeding bases across the country, and has obtained the general agency rights for more than 200 food brands across the country.

Comments: Meituan’s investment in Wangjiahuan is the largest single financing in my country’s group meal supply chain industry in recent years. Meituan Maicai and Kuailu, both created by Meituan, have also accelerated their deployment of group meal delivery. With heavy capital investment, group meal delivery will also undergo a major reshuffle. With its huge resource and financial advantages, Wangjiahuan will quickly form a nationwide layout.

Financing situation: On March 24, 2020, Weijie Chengpei announced the completion of a B+ round of financing of 100 million yuan. China Resources Xianglian and Fund Strategy led the investment, and existing shareholders Falcon Capital continued to follow. cast.

Summary of the event: Weijie City Distribution is a leading company in B2B warehousing and distribution. For community fresh food channels, Weijie City Distribution has achieved multi-temperature, multi-city and omni-channel warehousing and distribution integration. Serve. Weijiecheng Pei, like Guanmai, has always been a third party and continues to provide more value to the industry. The new round of financing will be used by Weijie City Distribution to expand and improve the nationwide warehouse distribution network and continue to upgrade the intelligent operation platform.

Comments: China Resources Xianglian and funds have been actively developing leading companies in supply chain and logistics and other subdivisions, and have invested in Shuhai supply chain. In addition to bringing a more advanced management system and richer industrial resources to Weijie City Distribution, this financing is more importantly the combination of Weijie's super urban distribution capabilities and China Resources Supermarket's years of retail experience.

Financing situation: On March 25, 2020, the one-stop service platform for frozen products "Xinfrog.com" completed tens of millions of yuan in pre-A round financing, which was exclusively invested by Jiuhe Venture Capital .

Summary of the event: Xindong.com is positioned as a one-stop service platform for frozen ingredients. Brand owners have opened flagship stores on the Xindong.com APP. The Xindong.com platform provides warehouse storage and cold chain distribution. , online operations and offline customer expansion, completing a one-stop delivery closed loop through four core services. This round of financing will be mainly used for talent echelon construction, establishment of new warehouses and information transformation. The core solution is to solve the problems of high cost, long time and difficulty in acquiring customers in sub-terminal procurement, as well as the problems of brand owners' oversupply, serious promotion difficulties of homogeneous products, and the inability to sink into channels for many years.

Comments: Frozen food is a huge market worth more than one trillion yuan, with high gross profit, high unit price per customer, high added value, high product standardization and low losses. However, the number of frozen product SKUs is huge and the standards are different. Upstream and downstream are very scattered, information is asymmetric, sales costs are as high as 10%, logistics and warehousing costs are high, and prices fluctuate greatly. Small and medium-sized end customers have no stickiness and low awareness of the brand. The frozen network industry has rich experience, and the increase in capital will help it solve its inherent pain points and achieve faster upgrades and expansion.

Financing situation: On April 1, 2020, agricultural operator Linong Group officially announced that it had completed tens of millions of dollars in financing, and the investor was Haina Asia Venture Capital Fund.

Summary of the event: Linong Group is a well-known hydroponic fruit and vegetable planting company and has 20 planting bases so far. Linong Group has greatly improved the quality and circulation efficiency of fresh products through the P2C model of self-operated origin + back-warehouse. Linong has been providing services to leading retail channels such as Yonghui, Pupu Supermarket, Wal-Mart and RT-Mart. The funds will continue to be used for the construction of hydroponic planting bases and production area back-up warehouses to improve its business layout in the Pearl River Delta and Yangtze River Delta.

Comments: There are three reasons why hydroponic vegetables are favored by capital: first, the input-to-yield ratio of hydroponic vegetables is high, which increases its strength compared with foreign investment; second, hydroponic vegetables are high-tech agriculture and have attracted much attention With high intensity and strong subsidies, the third hydroponic vegetables have made active explorations for agricultural industrialization. In addition, Linong Group’s P2C model can well make up for the quality and efficiency problems existing in fresh food e-commerce.

Financing situation: On May 11, 2020, Lehe Food Group announced the completion of a C round of financing of RMB 400 million. This round of financing was jointly led by Meituan Longzhu Capital and CDH Investment.

Event summary: As China's leading one-stop food supply service provider, Lehe is already quite competitive in business sectors such as food distribution, catering management, clean vegetable processing and cold chain logistics.

With the funds raised from this financing, Lehe will continue to increase investment in digital operations, cold chain infrastructure transformation and talent, and establish 300 standard food distribution centers across the country within two years. Food business flow drives market-oriented cold chain logistics.

Comments: Meituan is very optimistic about the group meal market. In recent years, the overall operating income of the group meal industry has increased by nearly 30%. There is a huge opportunity for food distribution. The B/C two rounds of investment are Recognizing Lehe's industry status and supply chain resources, and with the support of large capital, Lehe will also achieve higher gross profit margins.

Financing status: On May 21, 2020, the prepared dish research and development and supply chain platform Zhaoying Food announced that it had received a total of RMB 80 million in Series A and Series A+ investments from Qingsong Fund and Zero One Venture Capital.

Summary of the event: The model for finding ingredients is "supply chain + research and development". The upstream link is to thousands of prepared vegetable processing plants, and the downstream link is to b-end catering. By building a supply chain + city station system , enabling same-day delivery of prepared dishes. Only one year after its establishment, it has already provided services to 50 suppliers, with a monthly GMV exceeding 70 million yuan. This round of A and A+ financing will be mainly used for the expansion of sales network, construction of upstream R&D ecosystem, enhancement of product technology and team building. In 2020, Zhaoyingjing is expected to cooperate with 1,000 prepared vegetable processing plants and cover 250 counties, with target sales exceeding 1 billion.

Comments: Affected by this year’s epidemic, prepared dishes have become more familiar to more consumers. Obviously, capital’s response speed is also very fast. Searching for Ingredients has achieved remarkable results just one year after its establishment, and the strength of the team has also been recognized. The market potential of pre-made dishes is very large, and there are currently relatively few related companies. It can be said that the opportunities are great. There are huge food distribution opportunities hidden here. The two rounds of B/C leading investment are recognition of Lehe’s industry status and supply chain resources. With the support of large capital, Lehe will also achieve higher gross profit margins.

Although the fresh food market has broad prospects, it is also more difficult to make a profit. Players who cannot get into the top position will find it difficult to obtain capital bets, and it will be even more difficult to continue to burn money on this road. We must persist in innovation and upgrading, inject more powerful digital power into fresh food companies, and help fresh food companies reduce costs, increase efficiency, and beat the profit curve.