VCs back China smart vending machine operator

Citybox’s refrigerator-sized machines sell groceries and other fresh products. They use vision recognition and other technologies to track users and ensure a high level of security. Shoppers open machines by scanning a QR code, select their items, and payment is automatically processed via smart phone once the machine door is closed.

Citybox has partnered with Alibaba Group subsidiary Sesame Credit to get access to customers’ personal credit records. Those with poor credit records for online purchases are unable to use the machines.

Separately, Citybox has teamed up with Shanghai City Supermarket and Fruitday, a PE-backed e-commerce platform dedicated to selling imported fruit, to ensure reliable food supply in first-tier cities. Qiang Wang, Citybox’s founder, is the former chairman of Shanghai City Supermarket and a co-founder of Fruitday.

The company has set up teams in more than 10 major cities, including Shanghai, Beijing, Guangzhou, and Hangzhou. It has also reached agreements with about 2,000 corporate partners, such KPMG and Alibaba, to place machines in their office buildings. It expects to have 50,000 machines in operation next year.

Similar transactions in this space include a RMB125 million ($19 million) round for Xiaomai, a cashier-free convenience store operator, and a RMB100 million round for industry peer Bingobox, which is also backed by GGV among others.

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• Topics
• Greater China
• Technology
• Early-stage
• Consumer
• China
• TMT
• Venture
• GGV Capital
• ZhenFund