Amid capital winter in China, community group-buying platform Nice Tuan scores USD 88.3 million investment joined by Alibaba
Summary
Beijing-based online group-buying platform Nice Tuan (“Shihuituan” in Chinese) has closed a new round of financing, collecting USD 88.3 million, reported 36Kr on Thursday. Chen Ying, co-founder and chairman of Nice Tuan, said in an internal letter to employees that this closed round might be a very small step in the company’s development history, but it is really good news for the company itself now. It also signals positivity for the entire community-focused retail sector, which has been caught in a capital winter where investors are holding on tightly to their purse strings. Nice Tuan is in charge of sourcing fresh produce including fruits and vegetables, and delivers all goods ordered online by buyers living in the same neighborhood to a group leader. However, all community group-buying companies have to compete in the wider fresh produce market in China where giants like Nice Tuan’s backer Alibaba and JD.com are all eying for a slice of the pie.