The capital injection is received shortly after the company announced this March around $10 million of Series B financing led by Nokia Growth Partners (NGP) and followed by Series A investor KPCB. Deng Yuanyun, board member and general manager of NGP joined Meican’s board after Series B. The angel round was secured from ZhenFund founded by renowned angel investor Xu Xiaoping.
Launched in 2011, Meican, “delicious food” in Chinese, allows users to build a custom homepage by adding their locations and favorite restaurants, facilitating the food ordering process. In addition, users who have placed orders on the platform can check real-time tracking data of each order, like whether the restaurant have started to cook the dishes or the estimated arrival time.
The service has nearly 30,000 partner restaurants in four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, receiving 15 orders per user per month on average, said Zhao Xiao, CEO of the company. Meican’s monthly revenue stood at around 1 million yuan (around $1.6 million), mainly comes from commissions charged on restaurants.
Online food ordering services is becoming an indispensable part of urban life, especially for white collars who are too busy to cook themselves proper meals. The huge market leads to the emergence of strings of food ordering and delivering services, which are chased by venture capitalists. Startups like Ele.me, Etaoshi and Daojia.com all received different amounts of funding last year. On the other hand, Chinese leading rating and review service Dianping and Alibaba also added food delivery services to tap this market.
image credit: Meican