According to reports in Bloomberg, anonymous sources have confirmed that MissFresh, a Chinese grocery delivery startup based in Beijing, is seeking additional funding as the economy and market appear to be trending downward in the country. MissFresh is backed by Tencent Holdings Ltd. and is seeking at least $3 billion in additional funds.
Internal sources confirmed this move is not unexpected, but is still in the early stages. Details surrounding the efforts are subject to change, including potential backers and the target fundraising amount.
In China, startup capital-raising has grown increasingly difficult, leaving hundreds if not thousands of startups scrambling to find new funding. Recent tariffs handed down by President Trump have resulted in a heightened state of paranoia in the country, with growing concerns that the market and economy could take a serious hit in the coming months if the tariffs are not reduced or reversed.
The threat of a trade war is the driving force behind funding inconsistencies for MissFresh and other local startups.
MissFresh is a five-year-old startup with 25 million active monthly users and reported earnings of $1.5 billion USD in 2018. However, tariffs have put the brand, its competitors and other local startups at risk. MissFresh now aims to generate the funds it needs to remain sustainable during an economic downturn.
Beijing Missfresh Ecommerce Co. is also backed by Goldman Sachs Group Inc. and Tiger Global Management, though it is unknown at this time whether they have contributed to the startup’s fundraising efforts.