Will community group buying usher in a new round?
Learned, community retail platform Shihui Group completed the C1 round of financing, the amount of financing in this round Up to US $ 81.4 million, this round of financing was led by GGV Jiyuan Capital, with Yueyue Capital, Qiming Venture Capital, Zhuce Capital, and Gaohu Capital following the investment. Gao Hu Capital acted as exclusive financial advisor.
Nearly 2 years after its establishment, Shihui Group has completed four rounds of financing. The cumulative amount exceeds US $ 100 million. A large number of well-known investment institutions and star shareholders have appeared on its investor list. Among them, Alibaba has participated in the second investment, and the first entry is 2019 , but this round of financing has not yet disclosed relevant information. In addition, Investment institutions such as Joy Capital, Qiming Venture Capital, and Zhuce Capital also participated in multiple investments.
With more than four years of development, social e-commerce has experienced several rounds of ups and downs. Previously reported , in 2016, community group purchases became popular in Changsha, and began to blossom throughout the country in 2017. Since August 2018, there has been constant news about the financing of the track, and the head players such as the Ten Groups, you, me and you have been greeted by capital.
But the good days did not last long. In 2019, the explosive growth of the social e-commerce industry began to experience shocks. The first batch of entrants ushered in a reshuffle, and the head players have joined together to enhance their strength and survive the winter: 2019 On August 30, 2014, Shihui Group completed the merger with another community group purchase platform “You Me You”. This merger and acquisition was also called the first case of community group purchase merger; Special supply, then renamed Xianlaiduo, shrinking business to focus on fresh products.
Some financing records of Shihui Group, the picture is from Tianyancha
The players who have survived the winter have started a new round of adjustments. At the time of the merger with you and you, Chen Ying, co-founder and co-CEO of Ten Group, announced in an internal letter that Chen Ying announced the organizational structure of the New Ten Group and said that the New Ten Group would grow into a billion-scale enterprise. .
In the last round of financing, Chen Ying also stated that community group purchases are still the only mode of fresh e-commerce that can generate profits. Socialize, sink, offline . In addition, he also determined that in the future, he will work with more companies to promote the sustainable development of the community group buying industry. This means that the mergers and acquisitions of the head players in the community group buying industry will continue.
The outbreak of the new coronary pneumonia epidemic has strengthened consumers’ online shopping habits, and this change is difficult to reverse in a short time. In order to prevent customers in physical stores from being further shunted, locking out original users and even reaching incremental users, community group buying has become the transformation direction of many retail enterprises, which objectively gives the community group buying enterprises more room for development.
Chen Ying, the founder and co-CEO of Shihui Group, also said in an interview: “The emergence of community group purchases can ease the anxiety of offline stores, The market size will reach 500 billion yuan in the next few years. ”
However, if you want to occupy a place in the 500 billion yuan market, players still need to practice internal skills. It is understood that this round of financing of Shihui Group will still be used for national warehouse distribution construction and supply chain capacity enhancement, further improving the efficiency and experience of terminal performance.
At present, Shihui Group ’s offline outlets have covered more than 100 cities. The monthly GMV in April exceeded 650 million yuan, and the peak daily orders reached 1.6 million orders.