No one knows who will fall next in the ever-changing capital and business market.
Editor’s note: This article is from Interface News, author Lin Beichen, editor Wen Qiqi .
The wind of community group buying has been blowing for a year and a half, and finally ushered in the merger between the head companies.
At the end of August, the “Ten Group” issued a “Clerk Letter to the CEO”, announcing that the 10th Group has completed the merger with another community group buying platform “You and Me”. At the beginning of October, there was news that “food enjoyment” and “squirrel fight” completed the merger, and the two parties are currently completing the merger process. As of press time, the Food Club and the Squirrel did not respond to the news on this news.
In the past three years, community group buying has shown a trend of rapid development. According to the China E-Commerce Research Center, by the end of 2018, the number of community group purchase users reached 332 million, an increase of 57.34% compared with 211 million in 2017, compared with only 97 million in 2016.
From July to October 2018, there was a wave of spurt financing in community group buying. According to the incomplete statistics of the interface news, within three months, the head enterprises, you, the food, the radish, the ten gang, the neighbors, the fresh products, the koala selection and the prosperity of the preferred financing amount 2 billion yuan, the annual financing of more than 4 billion, well-known VC Sequoia Capital, IDG Capital, GGV Jiyuan Capital, Xianfeng Qiyun, Joy Capital, Zhenge Fund all entered.
Financing enthusiasm has been cut since 2019, in contrast to the overweight of Internet giants.
In May, Xingsheng is best to receive tens of millions of dollars in A1 round of financing, the investor is Tencent; in June, the 10th group is connected to Ali’s 1688 (Caiyuanbao) and retail pass; in September, the same life takes To the $100 million financing led by Yilian Capital, Yilian is an independent fund of the Nasdaq-listed company. In addition, Suning launched the “Su Xiaotuan” business at the end of 2018, and invested a lot of small-scale investment in the insect mother neighborhood in Shanghai.
Two short-term mergers and acquisitions represent the official entry of community group purchases into the second half. Burning money is unlikely to support the development of community group purchases for a long time. To survive in the second half, companies must look for a foundation other than funds.
The battle to stop burning money
After 2018, community group purchases showed a trend of heavy operations and transitions.
Before the 10th group, you and me are rumored to be squirrels. According to the investment network, the squirrel tried to make the next round of financing by means of mergers and acquisitions. However, the audit department settled in “you and me” for accounting and auditing and found that “you and me” itself is not healthy, the squirrel Fighting to help them repay part of the debt, resulting in more and more cash flow, and ultimately