E-commerce

E-Commerce Platform Missfresh Completes Strategic Financing of $29M – Pandaily

Summary

Missfresh, a Chinese fresh food e-commerce platform, announced on Friday that it has reached a strategic investment cooperation agreement with Shanxi Donghui Group, which plans to invest equity worth 200 million yuan ($29.58 million).

The announcement said that through this partnership, Missfresh and Shanxi Donghui will exchange resources and best practices related to agriculture operations, sales and marketing, carrying out a series of strategic cooperations in the whole industrial c…….

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Misscurrent, a Chinese language current meals e-commerce platform, introduced on Friday that it has reached a strategic funding cooperation settlement with Shanxi Donghui Group, which plans To take a place equity worth 200 million yuan ($29.58 million).

The announcement said that by way of this partnership, Misscurrent and Shanxi Donghui will commerce assets and biggest practices associated to agriculture operations, gross sales and advertising, Ending up a collection of strategic cooperations Inside the complete industrial chain, Similar to mannequin agriculture and order agriculture.

Based in 2014, Misscurrent pioneered the pre-warehouse operation mode and was listed on the Nasdaq in June 2021. Its primary enterprise is “Extremely-Quick Supply,” sending current meals and Daily requirements in the shortest time of Half-hour. In the meantime, “Subsequent-Day Supply” is an revolutionary enterprise launched by the agency to increase commodity packages, with A comparatively small income share. As properly as, The current enterprise strains of the agency additionally embrace the smart meals market and retail cloud.

However, The agency has mired in losses For A very Very prolonged time now. From 2018 to 2020 and The primary three quarters of 2021, The agency’s internet losses have been 2.232 invoiceion yuan ($330.1 million), 2.909 invoiceion yuan ($430.2 million), 1.649 invoiceion yuan ($243.9 million) And three.017 invoiceion yuan ($446.2 million), respectively. In three years and 9 months, The agency had An complete internet Lack of 9.808 invoiceion yuan ($1.45 invoiceion).

SEE ALSO: Grocery E-Commerce Firm Misscurrent Discloses Revenue Miscalculations

As a Outcome of Of these prolonged-time period losses, the agency’s capital state of affairs Isn’t favorable, and the money generated from enterprise operations is On A daily basis in an outflow state, so the operation principally Want to be accomplished by financing. As of The prime of 2019 and The prime of 2020, The agency’s asset-authorized obligation ratio exceeded 100%, and it was in an “insolvent” state. As properly as, by The prime of September 2021, the ratio was nonetheless at a extreme diploma, although it has enhanced barely. The delayed submission of its annual report might enhance buyers’ hypothesis on The agency’s efficiency.

As properly as, Misscurrent has acquired two warning letters from the Nasdaq As a Outcome of The center and The prime of May, Because it Did not submit the 2021 annual monetary report on time, and The agency’s inventory was continuously Decrease than $1 for one full month. The agency additionally encountered scandals that it was pressured to pay the invoice by the courtroom As a Outcome of of a delay in the supplier’s cost.

Source: https://pandaily.com/e-commerce-platform-missfresh-completes-strategic-financing-of-29m/

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