Chinese grocery-delivery startup Missfresh is seeking up to US$500 million in new funding to help it continue to trade as it expands its reach across the mainland.
Beijing Missfresh Ecommerce Co, which has Tencent, Tiger Global Management and Goldman Sachs on its shareholders register, declined to comment on the fundraising, which was first revealed by Bloomberg.
According to the news service’s sources, the company plans to raise between $300 million and $500 million in an arrangement that would put its valuation somewhere between $3 billion and $4 billion.
Missfresh is in a fight for market share in China’s rapidly growing delivery services sector with competitors burning through capital while chasing the critical mass required to deliver profits.
The company has 1500 mini warehouses from which it promises delivery within an hour. As of May, the five-year-old company boatsed 25 million monthly active users and last year it achieved sales of $1.5 billion.
To date, Missfresh has raised about $900 million across eight funding rounds.