MissFresh and Dingdong Maicai, two Chinese online grocers, filed for US IPOs. Short-video app Kuaishou tests a local services app via Wechat, competing with Meituan and Ele.me. Online retailer JD.com and its logistics business are expanding overseas.
China’s e-commerce and retail market offers a fire hose of products, choices, business models, rapidly changing content, and more. Here’s what you need to know about China’s online retail market for the week of June 3 to June 9.
IPOs, fundings, and earnings
Tencent-backed online grocery delivery platform MissFresh filed for an initial public offering on the Nasdaq on Tuesday. The company said it plans to use the proceeds to enhance its technology infrastructure, upgrade its supply chain, develop its retail cloud business, and expand marketing. Goldman Sachs and Tiger Global Management are investors in the Beijing-based firm, which has raised more than $1.6 billion since its founding in 2014. (SEC filing)
Chinese grocery app Dingdong Maicai filed for an initial public offering on the New York Stock Exchange on Tuesday. The filing comes after the SoftBank-backed company raised more than $1 billion in its two most recent funding rounds in April and May. (SEC filing)
Caihuoxia, a second-hand consumer electronics trading platform, has secured $45 million Series A funding in a round led by Eastern Bell Capital. The company is valued at $140 million. 58.com-backed re-commerce platform Zhuanzhuan Group will remain a controlling investor of the company after the deal. (36kr, in Chinese)
Dian Xiao Mi, which provides software support for cross-border online retail trades, announced on June 2 that the company had completed its Series B to raise RMB 135 million ($21.1 million). Gaorong Capital led the funding round. Previous backers GGV Capital and CDH Investments also took part the round. (TechNode, in Chinese)
Dada, a JD.com-backed on-demand grocery delivery firm, released its first-quarter earnings on Monday. Revenue grew 58% year-over-year to RMB 1.67 billion, while net loss tripled to RMB 720 million. (Dada)
Kuaishou gets into local services
Short-video app Kuaishou has launched a new WeChat mini-program to provide local services. Users can discover restaurant discounts and coupons, and use group-buying features. Kuaishou is competing against food delivery platforms Meituan and Ele.me, according to iiMedia research chief Zhang Yi. The service is currently only available in Changsha, Harbin, and Shenzhen. Kuaishou’s direct rival Douyin is already offering local services in 300 cities around China. (KrAsia)
JD.com expands international service
E-commerce giant JD.com has launched three weekly chartered cargo flights between the southern Chinese city of Shenzhen and Thailand’s Bangkok. The flights will cut down delivery times to Thailand to less than 48 hours. The tech giant runs online shopping platform JD Central in Thailand through a partnership with local retail conglomerate Central Group. According to a company statement, JD.com ships daily necessities, small household electronics, and other e-commerce products to Thailand. (Nikkei Asia)
JD Logistics launched its first cargo flight between China and the United States on June 7. The flight, operated by China Eastern Airlines, will run three times a week from the eastern city of Nanjing to Los Angeles. The flights will help shipments to be delivered in 48 hours. The move comes after JD Logistics CEO Yu Rui said the company expects users outside the JD ecosystem to power growth, following the logistics firm’s IPO on May 28. (JD.com)
Fashion retailer Mogu’s sales from livestreams rose 42% year on year. The increase comes despite a 24% drop in revenue to RMB 91 million. The company intends to restructure and focus on growing its livestreaming business, according to Chief Strategy Officer Raymond Huang. (Caixin)
Online fashion marketplace JOOR opened its first China office in Shanghai after setting up new offices in Tokyo and Melbourne earlier this year. CEO Kristin Savilia said that the new Shanghai branch will allow for continued expansion across the APAC region, as the company’s wholesale volume for APAC-based brands in 2021 grew by 419%. (TechCrunch)