Kansai Halifax Holdings Releases Report on Tencent Increasing Stake in Commodity Start-up Xingsheng Youxuan
TORONTO, Jan. 11, 2021 (GLOBE 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 reportedly 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 hugely in China, with e-commerce players such as Pinduoduo becoming multibillion-dollar enterprises off 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 HoldingsHeadquartered 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.Media contactCompany: Kansai Halifax HoldingsMr. Moto Saionji, Chief Market AnalystE-mail: [email protected]Website: https://khhfinancial.com/Telephone: +1 647 945 9502Address: Brookfield Place, 181 Bay Street, Suite 2500, Toronto, Canada.