Home Finance News Grocery Startup Missfresh Seeks $500 Million in Funding As Chinese Start-Up Capital...

Grocery Startup Missfresh Seeks $500 Million in Funding As Chinese Start-Up Capital Dries Up

As everyone knows, the eventual success of a startup almost always depends on the sort of money it can raise and how long the company’s investors can keep going before a viable business model can take shape. In other words, it is a long game and it takes years before a company can be deemed enough for an IPO. More often than not, many of the company’s do not get to that stage either, but if startup investment dries up, then the failure of a company is inevitable. Startups in China are currently going through such trouble as investment capital at some of the bigger private equity seems to have dried up amidst economic troubles in the country. It has emerged that Beijing Missfresh E-commerce Co. or simply Missfresh, which is involved in the grocery business, has struggled to attract investment from its backers.

The company is primarily backed by Chinese tech royalty Tencent Holdings, but other backers like Tiger Global Management and Goldman Sachs Group are equally high profile. According to sources in the company which is close to the developments, Missfresh is looking to raise capital in the range of $300 million and $500 million and that too at a valuation of $4 billion. At this point of time, many startups are struggling, they are also struggling to raise cash that could allow them to grow their businesses quickly and many are currently seeking a new injection of capital from their backers. However, things have not proven to be as easy as it used to be for large startups even a year or so ago when raising capital used to be relatively straightforward.

Currently, there are other factors at play that has dried up the coffers of many of the biggest startup backers in China. The trade war with the United States has been a severe strain on the revenues of many of these companies. In addition to that, the slowdown in the Chinese economy has also proven to be a drag on the bottom line of many startups and that in turn has made life difficult for the backers as well.

Felicia Learned
Felicia Learned
Felicia well-known for her writing skills works as a content writer lead in our team. She also has a deep interest in forex, Finance & cryptocurrency funds and guides people dealing with a cryptocurrency exchange. She loves reading finance blogs in her free time. For any issues, you can contact her through email: felicia@forexnews.world.

Must Read

No Consensus by Lawmakers on U.S Fiscal Package—Dollar Takes A Hit

As U.S lawmakers, the Republicans and the Democrats fail to reach a consensus on the way forward for an economic stimulus package, the dollar...

Pressure on the Dollar as Vaccine Hopes Rise High

The dollar came under sustained pressure as a fiscal package to rescue the economies in the European Union and the positive progress towards a...

Euro Hovers Near Four-Month High as Sectors Aims at the EU Summit

On Monday, the Euro climbed almost four months up from the dollar. As the investors, expected the European leaders crack the deadlock, and ink...

What to Expect from Australia’s July 2020 Reserve Bank & Treasury Meeting

The upcoming week would be big in announcements from Australia’s monetary and banking authorities. New updates on fiscal policies would be out, shaping up...

Hopes of a New Vaccine Pushes the Dollar to a One-Month Low

On Wednesday, the currency markets saw a revival of the risk sentiment as the steady progress towards the COVID-19 vaccine helped to strengthen the...