Grocery group-buying platforms Tongcheng Shenghuo and FamilyOne, also known as Linlinyi, have merged, 36Kr has learned, citing people familiar with the deal.
After the merger, the new company has gained “several tens of millions of dollars” in a Series C+ round from FamilyOne’s earlier investor Xianghe Capital. Tongcheng Shenghuo’s earlier investors include Bertelsmann Asia Investment Fund and Oriza Holdings, 36Kr added.
Tongcheng Shenghuo, was founded in 2018 in Suzhou, Jiangsu, while FamilyOne, was founded in October 2017, also in the city. Tongcheng Shenghuo operates a WeChat mini-program and a WeChat public account allowing residents who live in the same neighborhood to buy groceries at discounted prices.
The merger comes shortly after Tongcheng Shenghuo closed its USD 200 million Series C round in June.
Group-buying platforms have seen significant investment recently as more and more Chinese shift shopping online amid the coronavirus pandemic. Nice Tuan, which merged with Niwonin in August 2019, this year closed a USD 80 million C2 round in July, a USD 81.4 million round in May, and a USD 88.3 million round in January.
(The article has been updated in the second paragraph, correcting the statement that the company has raised “several tens of million of dollars.”)
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.