Ant Financial, Primavera back Chinese vending machine provider

Ant Financial led the investment and committed RMB1.2 billion. The Alibaba Group affiliate declined to comment on the deal.

The proceeds will enable Ubox to expand its network of vending machines. However, by tying up with Ant Financial, the company also gets plugged into Alibaba's new e-commerce ecosystem. This builds on an existing cooperation agreement with Ant Financial that saw facial recognition-based payment systems added to machines.

The machines serve two functions: they dispense products on-demand, like a conventional vending machine; and they can be used as a pick-up point for goods pre-ordered through the Ubox app. Products can also be promoted through the app, offering another source of revenue.

The company collects data on purchasing activity, allowing it to identify the most popular products in different machines and adapting to local customer demand. As a result, it has started offering a variety of complementary stand-alone services, ranging from fresh coconut juice dispensing machines and self-service KTV booths.

Ubox now operates more than 100,000 vending machines in over 300 cities in China. It works with local franchisees, offering bulk buying services and daily maintenance services.

The Carlyle Group invested RMB530 million ($74 million) in Ubox in 2015 and the company listed on the National Equities Exchange & Quotation (NEEQ), or New Third Board, a year later. Ubox received a RMB1.2 billion investment from Shanghai Yunxin Venture Capital last November, according to AVCJ Research. 

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• Topics
• Greater China
• Consumer
• Expansion
• Technology
• Ant Financial
• Primavera
• TMT