(Bloomberg) -- Alibaba Group Holding Ltd. and DST Global led a $750 million investment round for Chinese grocery app Nice Tuan to help the startup expand in the increasingly competitive industry.
Nice Tuan, also known as Beijing Shihui Technology Co., attracted funding from others including D.E. Shaw & Co., Anatole Investment and Jeneration Capital, the company said. It will use the funding to bolster its supply chain and increase fresh produce offerings.
Founded in 2018, the Beijing-based company focuses on community grocery buying, a crowded sector that's captured the attention of some of the biggest funds and Chinese tech companies including Tencent Holdings Ltd., JD.com Inc. and Meituan. Consumers sheltering at home during the pandemic have reinvigorated a once-difficult groceries arena, and startups in the space are raising funds to win more market share in a sector that could reach 1.27 trillion yuan ($193 billion) by 2025.
The startup also attracted funding from Dragoneer, CDH Investments, GGV Capital, Kunlun Capital, Franchise Capital and Cygnus Equity, the company said. Its early investors include Joy Capital.
Nice Tuan provides services in 1,598 cities and counties across China, generating 15 million orders per day, it said.
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