KKR, Alibaba invest in China fresh-food online retailer Yiguo

Financial details weren't disclosed, but it is said to be the largest funding round in China's fresh produce space. KKR is investing through its China Growth Fund.

Founded in 2005, Yiguo sells seafood and fruit online from China and overseas. The company provides one-stop services, managing food procurement process, cold-chain quality control, online order processing and food distribution.

Yiguo runs its self-owned cold-chain company ExFresh, which is a strategic partner of Alibaba's logistics platform Ciaoniao Network Technology. The logistics company has already built warehouses in six Chinese cities to provide nationwide delivery services.

The investment in Yiguo aligns with KKR's long-term investment thesis of promoting and enhancing the availability of safe and healthy food in China. "Yiguo is a leader in its field with years of experience and expertise in the fresh food industry, having developed an efficient cold-delivery chain system and deep knowledge of customers," David Liu, co-head of KKR Asia Private Equity and CEO of KKR China, said in a statement.

Yiguo raised more than $10 million from Alibaba in 2013. In 2014, Yunfeng Capital and Alibaba provided an undisclosed Series B round of financing for the company.

With the new funding, Yiguo will continue to expand its customer base, develop new products and improve its logistic operation. 

Last year, JD.com, China's second-largest online retailer, led a $70 million Series C round for Fruitday, a China-based e-commerce site dedicated to selling imported fruit. Existing investors SIG Asia Investments and ClearVue Partners also participated.

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• Topics
• Greater China
• Consumer
• Technology
• Venture
• Expansion
• China
• TMT
• Alibaba Group
• KKR
• Growth capital
• Logistics