English | 简体中文 | 繁體中文 | 한국어 | 日本語
Monday, 11 January 2021, 14:00 HKT/SGT
Share:
    

Source: Kansai Halifax Holdings
Kansai Halifax Holdings Releases Report on Tencent Increasing Stake in Commodity Start-up Xingsheng Youxuan

TORONTO, Jan 11, 2021 - (ACN Newswire) - Kansai Halifax Holdings have today released a research report on Tencent Holdings Ltd increasing its stake in Xingsheng Youxuan. The global technology conglomerate is investing $100 million in the Chinese online grocery startup, which is valued at around $5 billion.

"In addition to Tencent, Xingsheng Youxuan is also in talks with other potential investors including Beijing Kuaishou Technology Co. to raise more funding," said Jonathan Scott, Director of EMEA Wealth Management at Kansai Halifax Holdings.

The capital injection from Tencent arrives as community buying platforms witness a boom in funding, and comes quickly after e-commerce giant JD.com Inc. acquired stock in the grocery delivery platform with their own $700 million investment.

According to researchers at Kansai Halifax Holdings, the current funding round could precede an initial public offering (IPO), although specifics such as timing and listing exchange are yet to be confirmed.

Changsha-based Xingsheng is one of several online group-buying apps that have popped up in China in recent years. These platforms enable individual consumers, families, local businesses, and households - typically those that live or work in the same neighborhood, to join together under a designated group leader, who buys fresh produce and other everyday necessities on their behalf in bulk, often direct from local farmers and wholesalers. The leader of the group then coordinates delivery to the rest of their group. This allows the group as a whole to secure lower prices than they would typically pay in the supermarket or from online grocers individually.

"Community group buying of fresh groceries is attracting billions in startup investment at the moment, and a costly battle in a fragmented grocery delivery market is potentially formulating," commented Michael Taylor, Director of Capital Markets at Kansai Halifax Holdings.

The community group model has taken off in China, with e-commerce players such as Pinduoduo becoming multibillion-dollar enterprises on the back of strong consumer demand. In October, Pinduoduo claimed that it had become the largest online seller of farm produce in China, facilitating over 100 million orders each day. Last year it sold $21 billion worth of agricultural produce from 12 million farmers across China.

About Kansai Halifax Holdings
Headquartered in Japan, Kansai Halifax Holdings is one of Asia's leading wealth management companies, entrusted to manage over $6.45 billion in client investment capital. Visit https://khhfinancial.com.

Media contact
Kansai Halifax Holdings
Mr. Moto Saionji, Chief Market Analyst
E-mail: [email protected]


Topic: Press release summary
Sectors: Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2021 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
Blockpass and Matic Announce Integration  
Jan 18, 2021 23:00 HKT/SGT
Rhotex Inc Launches Environmentally-Sound Options to Crypto Mining  
Jan 18, 2021 23:00 HKT/SGT
AC Milan to Join Sports Crypto Movement with Launch of $ACM Fan Token  
Jan 18, 2021 22:00 HKT/SGT
14th Asian Financial Forum opens today  
Jan 18, 2021 19:00 HKT/SGT
TOYOTA GAZOO Racing Targets the Top Step on Classic Season Opener  
Jan 18, 2021 17:08 HKT/SGT
Second Overall as Toyota Gazoo Racing Fights To the End of Dakar 2021  
Jan 18, 2021 16:30 HKT/SGT
DTXS Successfully Held the Auction in Beijing Amid the Pandemic, the Company as well deeply involved in the wine industry  
Jan 18, 2021 16:29 HKT/SGT
ABC International is Giving Redsun Properties "Buy" Rating with Target Price at HK$3.8  
Jan 18, 2021 12:22 HKT/SGT
Greenbriar Provides Montalva Update  
Jan 18, 2021 08:40 HKT/SGT
SinoMab Dosed First Healthy Subject in Phase I Clinical Trial of SN1011 in China  
Jan 18, 2021 08:30 HKT/SGT
More Press release >>
 Events:
More events >>
Copyright © 2021 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 400 879 3881 | Hong Kong: +852 8192 4922 | Singapore: +65 6653 1210 | Tokyo: +81 3 6859 8575