Ajisen, Hina back Baidu’s online food-ordering platform
Ajisen Holdings, a Chinese fast casual restaurant chain operator, has teamed up with The Hina Group and its affiliate Hanking Group to invest up to $70 million in Baidu Takeout Delivery, an online food delivery ordering platform run by the Chinese search giant.
According to a filing, Ajisen Investments has agreed to commit $60 million to a PE fund managed by Hina and Hanking. The $10 million will be raised from other investors by the GP. All capital raised will go to Baidu Takeout Delivery.
The platform allows users to order food and beverages online from restaurants at selected locations. It currently covers nearly 90 Chinese cities, focusing on middle to high-end white collar workers and residential markets.
Founded in 1996, Hong Kong-listed Ajisen manufactures packaged Japanese ramen and other dishes. The group also operates restaurants under its own brand. As of the end of last year, it has 669 restaurants in 120 Chinese cities. Its turnover increased by 2.5% year-on-year to reach HK$3.3 billion last year, while net income rose 1.4% to HK$275 million.
China-focused Hina is a cross-border investment banking and private equity firm with a focus on technology. Its affiliate Hanking provides alternative investments and portfolio management services to institutes and families.
Food-ordering platforms enjoy a prominent position in China's online-to-offline (O2O) universe. According to internet consultancy iResearch, food will represent one of the largest vertical segments of the O2O market by 2015, with 300 million customers and a value in excess of RMB270 billion ($44 billion).
In April, Chinese restaurant reviews and group-buying specialist Dianping led a RMB140 million ($23 million) Series C round of funding for Meican.com, a local online food-ordering platform. In January, Ele.me received $350 million in a Series E round from CITIC Private Equity and Sequoia Capital as well as strategic investors Tencent Holdings, JD.com and Dianping. JD is also an investor in Daojia, having led a $50 million Series D round for the company in September 2014 alongside Macquarie Capital.
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