Chinese online fresh produce retailer FruitDay completes $70m funding round

Chinese online fresh produce retailer FruitDay has completed a $70m round of financing as it seeks to invest in the construction of new infrastructure, recruit new talent, strengthen its upstream supply chain and develop its overall business.

FruitDay claimed that it enjoyed annual topline growth of more than 150% during the previous six years, leading it to become China’s largest fresh produce e-commerce company in terms of revenue. More than 80% of the fruit that it sells in China is imported from foreign markets such as the US, Australia and South Africa, underscoring its leadership in the specialised sector of cold chain logistics, the firm said.

The round of funding was led by China’s largest online direct sales company, JD.com, followed by an investor group that included Susquehanna International Group and ClearVue.

FruitDay founder and CEO Wei Wang said: “For over six years, FruitDay’s dedication to providing Chinese consumers with the best possible experience shopping for fresh produce online has helped us become the clear leader in this fast growing vertical. The financing announced today will allow us to continue strengthening FruitDay’s market leadership as we build a world-class management team and further expand our cold chain logistics and upstream supply chain capabilities.

“We are delighted and honoured that JD.com, China’s largest direct sale e-commerce company, has recognised FruitDay’s advantages in the fresh produce space. Our strategic partnership with JD.com will enhance FruitDay’s ability to provide consumers throughout China with fresh produce from around the world in the safest, fastest and most convenient manner.”

JD Mall CEO Haoyu Shen added: “With our shared commitment to providing consumers with the best online shopping experience, FruitDay and JD.com are natural partners as Chinese consumers increasingly shift to purchasing fresh produce online. By combining JD.com’s online e-commerce platform and nationwide logistics infrastructure with FruitDay’s vertical leadership, more and more Chinese consumers nationwide will have the ability to purchase safe and healthy fresh produce online with confidence. As we build China’s premier online e-commerce platform, JD.com will continue to explore long-term partnerships with leaders in key vertical markets.”