The chinese app said at the time that the funds raised would be used for market expansion and R&D
Yijiupi, 易久批, an online beverage B2B trading platform, received USD 80 million in additional funding from returning investor Tencent which the company called a “strategic investment”, according to media. Founded in 2014, the Beijing-based start up, took a gamble in China’s B2B business, and now has operations in in 26 provinces and 140 cities, covering all first and second-tier cities.
Thus, The GMV (Gross Merchandise Volume) of the platform is set to pass RMB 20 billion (USD 2.8 billion) this year, a steep increase from last year’s RMB 13 billion (USD 1.8 billion) record, according to Yijiupi. The chinese app said at the time that the funds raised would be used for market expansion and R&D. Tencent is not the only investor, Yijiupi’s early backers include big-name investors Meituan Dianping, Source Code Capital, and Bertelsmann Asia Investments.
Following e-commerce trends, Yijiupi said it was also exploring new retail models, helping to transform conventional liquor stores, convenience stores, and supermarkets into new retail terminals. But this Beijing-based startup will face challenges from competitors. As we said the HKEx-listed Meituan-Dianping is a strategic investor of Yijiupi. Due to beating Alibaba’s Tmall, the O2O platform giant had plans to incorporate Yijiupi’s alcohol products on its platform and is now taking another leap by joining Tencent to co-lead this latest round.
But Chinese winery e-commerce sector is growing and extremely competitive. Yijiupi main competitors include Wangjiu.com and Jiuxian.com, the latter was listed in domestic stock exchange in 2015.