Morning Report: If you haven’t heard already, a vegetable delivery company in China may have raised $600 million.
Always eat your vegetables.
For Meicai, a China-based vegetable selling platform, that’s less something your parents tell you at dinner and more a guiding business principle. And according to a Bloomberg report that surfaced yesterday, the company may have raised $600 million to $800 million in a round led by Tiger Global Management and Hillhouse Capital. The company is said to be valued at $7 billion, post-money.
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And this isn’t the first round this year for the direct-delivery vegetable company. Prior to this round, the company raised $450 million at a $2.8 billion post-money valuation in January.
For some background, the company, founded in 2014 by Chuanjun Liu, connects farmers with restaurants using an app that can run on low-cost smartphones. Meicai currently operates in 100 cities, employed more than 9,000 individuals within its first two years of operation according to Wired, and aims to serve the more than 10 million small and medium-sized restaurants in China.
Though the $600 million (or more) round has yet to be confirmed, the fact that a vegetable delivery company may have a valuation almost as high as Lyft’s says volumes about the investment climate in China. Using massive manpower and leveraging supply and demand to address this massive market is Meicai’s modus operandi. Eager investors are clearly willing to bet that its methods will work.
iStock Photo / Duy Doan