+1-518-621-2074 | US-Canada Toll Free Contact Us

Ele.me Raises Momentous US$630 Million Funding

about us

Published on : Sep 02, 2015

The leading takeout site in China Ele.me has announced on August 28 of receiving US$630 million worth fresh funding by CITIC Capital and the supermarket chain Hualian. The funding was received against a market cap of US$3 billion and this pushed the size of the company’s total investment to a whopping US$1.1 billion. The fresh round of funding was carried out by investors including Sequoia Capital, Tencent JD, and relatively new backers Gopher Asset and China Media Capital. 

The company however did not divulge information on the share of investment by each investment. Nonetheless, the company did reveal Hualian’s contribution worth US$90 million and said that at present it is focusing to capitalize from its offline resource to ensure prompt and efficient food delivery services across China. 

Ele.me was founded back in 2009, as a student empire-building project. Since then Ele.me has witnessed a significant growth against the backdrop of China’s booming O2O industry over the last couple of years. 

The company has also announced impressive metrics alongside the funding news. Until July 2015, the startup had more than 10,000 employees and provided service to more than 300,000 restaurant and to more than 40 million users across 260 cities in China. The company also recorded a daily turnover hits of US$9.4 million, with a whopping 98% of the total transactions coming from mobile users. 

Zhang Xuhao, the founder and CEO of Ele.me said that the funding is slated to be used for constructive a more sophisticated delivery and training platform. They also intend to use the money to technologically upgrade their service to ensure improved user-experience. He also indicated that the company has plans to raise further rounds of investment since constructing an efficient delivery platform requires a strong capital support. 

The booming online food delivery sector in China is forayed by an increasing number of players starting from the internet giants such as Alibaba, Tencent, and Baidu to the mid-sized Meituan, Dianping to vertical line of startups such as Daojia, Meican, and Waimaichaoren