SHANGHAI -- Chinese grocery app Dingdong Maicai on Wednesday announced it has raised $330 million in a Series D+ funding round led by SoftBank's Vision Fund.
Including the latest financing, Dingdong Maicai has now raised over $1 billion in its Series D round. In April, it had pocketed $700 million from an investor group co-led by global investment firms DST Global and Coatue.
Cygnus Equity, which participated in Dingdong Maicai's Series D round, was its adviser for the latest transaction.
Dingdong Maicai plans to use the proceeds from its latest funding round to spruce up its supply chain.
Operated by Shanghai Yibaimi Network Technology, Dingdong Maicai delivers fresh produce to users in 29 Chinese cities, including Beijing, Shanghai, Shenzhen, and Guangzhou. It saw a surge in sales last year due to the COVID-19 pandemic, recording over 850,000 orders per day and monthly revenue of 1.5 billion yuan ($229 million).
The company has previously said it was considering an initial public offering in the U.S. as early as this year to bankroll its expansion in the competitive fresh food delivery market.
China's online grocery industry has become more competitive as players backed by internet giants Tencent Holdings, Alibaba Group Holding and JD.com battle with startups for market share. The pandemic has further accelerated demand for delivery of fresh produce.
Before the two tranches of the Series D round, Dingdong Maicai had held eight earlier rounds of financing from investors, including Sequoia Capital China, Qiming Venture Capital, BAI, General Atlantic, Gaorong Capital and Capital Today.
Other online grocery sellers in China include Tencent-backed Xingsheng Youxuan and Missfresh, CDH Investments-backed Benlai and SIG-backed Fresh Buddy.
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