Grocery App Dingdong Maicai Raises $700 Million to Fund Expansion
What’s new: Chinese online grocery app Dingdong Maicai secured $700 million of funding from investors including DST Global and Coatue Management to fund its battles in the white-hot market.
Dingdong said it will use the money to expand its business network and invest in supply chains and team building.
The fundraising followed a previous funding round disclosed in April 2020 when Dingdong raised $62 million and was valued at $1.5 billion.
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.
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