China's largest online fresh fruit retailer, Fruitday.com, has attracted tens of millions of dollars in financing led by ClearVue Partners, a private equity fund targeting fast-growing and promising consumer companies in the Greater China region, signalling potential growth for a company that has focused on developing an web-based distribution service primarily for imported fresh fruit.
As US online giant Amazon reportedly prepares to roll out its first AmazonFresh grocery distribution service in Germany and the UK, the internet food retailing business in China could be poised for significant growth as a result of Fruitday's latest round of investment support, which has also been backed by SIG Asia Investments.
The new round of financing follows the establishment last month of a US$262m maiden fundfor Fruitday's expansion plans, aimed at capitalising on an 'irreversible' rise in Chinese consumption levels.
'We met many PE firms and ClearVue was different,' explained Fruitday founder and chief executive Wang Wei. 'They were strategic, professional and had a deep understanding of our business and the consumer market in China.'
He added: 'We believe that there is strong and increasing consumer demand in China for the freshest, high-quality fruits from around the world.'
Total consumption of fresh fruit in China's urban markets is estimated to have been worth more than Yn400bn (US$65.3bn) in 2013, with an annual growth rate of about 15 per cent, according to Fruitday.
Driven by an increasing demand for high-quality and healthy fruits, the market for imported fruit is said to be growing even faster with an annual growth rate of over 40 per cent especially in mega-cities like Shanghai and Beijing.
Global sourcing
Fruitday.com is a leading fresh fruit e-commerce site in China, dedicated to providing the freshest, highest quality imported fruits from all around the world to Chinese consumers.
With 90 percent of its portfolio consisting of imported products and delivering 2m cases of fruit to over a half million customers in the country, the company manages sourcing, warehousing, production, delivery and after-sales service.
'We believe that online shopping for fresh fruit in China is a new and fast-growing consumer trend,' commented Harry Hui, managing partner at ClearVue.
'With access to the highest quality domestic and imported fruits from around the world, Fruitday.com has changed the way Chinese consumers buy fresh fruit, changed the operating model of the domestic China fruit and fresh food sector, and has helped to improve industry standards overall.'
In the space of just five years, Fruitday.com claims to have achieved a number of firsts for the China market, apparently becoming the first company to introduce Sunkist Moro oranges, ultra-big Zespri kiwifruit, Tasmanian cherries, US pears, Green Giant-branded Mexican avocados as well as Diva and HoneyGlo apples from New Zealand.
