China smart convenience store operator raises $19m

Xiaomai started out in 2013 as a campus-focused online-to-offline platform, offering university students a range of services including online retail, last-mile delivery, and even career development support. It previously received funding from Sequoia Capital China, Chengwei Capital, and logistics company ZTO Express.

Two years ago, Xiaomai expanded its retail business beyond campuses, with a view to developing technology-enabled convenience stores. Like vending machines, these stores are movable and can be placed at anywhere; there are no cashiers. Member customers access the stores using facial recognition technology. They select daily items such as groceries, snack foods, and soft drinks, scan the barcodes on these products, and settle payments online.

The fresh capital will be used to build out the company's supply chain and upgrade its technology. Xiaomai plans to scale up its business through franchising, a statement said.

Several fully-automated Chinese convenience store operators have received VC backing. Last month, F5 Store raised RMB30 million in an extended Series A round of funding from Sinovation Ventures, while two weeks ago Bingobox raised over RMB100 million from GGV Capital, Qiming Venture Partners, Source Code Capital, and Ventech China. 

Another player, Bianlifeng, reportedly received $300 million from Zebra Capital, a private equity firm set up by Chenchao Zhuang, founder of online travel search portal Qunar.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Technology
• Early-stage
• Consumer
• China
• TMT
• Venture