China’s Bianlifeng acquires VC-backed Lingwa

The acquisition will help Bianlifeng expand its market reach by adding Lingwa’s 10,000 stores to its existing network. As part of the deal, Lingwa will continue to operate independently under its own brand, while Bianlifeng will share its IT system, logistics resources and customers with Lingwa.

Bianlifeng, founded in late 2016, has about 50,000 cashier-free convenience stores and vending machines in China, selling daily items such as snack foods and soft drinks. Through a mobile app, customers scan product barcodes and payments are settled online. Users can also order home delivery services from the app.

The company reportedly raised $300 million in a Series A round early last year from Zebra Capital, a PE firm established by CC Zhuang, the found of Chinese online travel site Qunar.

Lingwa, which operates a similar business model to Bianlifeng, has also previously raised VC funding. Duoniu Capital and Zhejiang Lohas Venture Capital provided seed capital to the company in October 2015. This was followed by a pre-Series A round in April last year, led by Long Hill Capital. Zhizhuo Capital also participated.

The latest merger is a reflection of a broader trend of consolidation in the cashier-free convenience store sector. In October, Shanghai-based Xingbianli acquired industry counterpart 51 Snackbar. Prior to that, Guoxiaomei, which is backed by BlueRun Ventures and IDG Capital, merged with VC-funded Fangqiebianli.

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• Topics
• Greater China
• Technology
• Consumer
• Buyouts
• China
• TMT
• Long Hill Capital
• M&A