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Tencent, Primavera Said to Fund Grocery App at $3 Billion Value

  • Tencent is still deciding on investment amount, people say
  • The pandemic has galvanized China’s market for fresh produce

Investors including Tencent Holdings Ltd. and private equity giant Primavera Capital are joining a funding round that values Chinese grocery delivery upstart Xingsheng Youxuan at $3 billion, people familiar with the matter said.

The two companies are bankrolling one of the more recent entrants to a sector galvanized by the pandemic. The latest financing of about $300 million for Xingsheng Youxuan triples the company’s price tag from its last funding round in 2019, the people said, asking not to be identified because the information is private. Tencent -- which also backs grocery-delivery rival Missfresh -- will participate though it hasn’t decided on how much capital to put in, one of the people said.