Amazon has poured $20 million in Yummy77, a food delivery site based in Shanghai. Yummy77 confirmed the funding in a post on Weibo and said it will use the capital to expand into new markets and help Amazon’s China site expand its selection of goods. This marks the first time that Amazon has invested in a Chinese company after launching in the country a decade ago. Amazon said it will hold a minority stake in Yummy77, which will continue to operate independently instead of being folded into Amazon China.
Amazon has invested $20 million of funding in Shanghai-based online food vendor Yummy77. It is the first time that the U.S. e-commerce giant has invested in a Chinese company, ten years after it first entered the Chinese market. Amazon disclosed that it will hold a minority stake in Yummy77, which will continue its independent operation after the funding. The fund is expected to help Yummy77 enrich product categories and expand operations beyond Shanghai. Launched in February 2013, Yummy77 is focused on fresh and gourmet foods, such as seasonal fruit, fresh seafood, eggs, meat, dairy products, etc. It is tapping the growing demand among urban Chinese residents for high-quality imported foods and swift delivery. The company’s sales reportedly exceeded 100 million yuan (around $16 million) in December last year and its registered users reportedly surpassed 1 million as of February this year. Amazon launched online fresh food business Amazon Fresh in 2007 in the U.S. market. But it does not provide this service in China.
