China food delivery company raises USD 630m
Ele.me, China's largest food delivery company, has raised USD 630m in venture capital, valuing the company at more than USD 3bn. The investors were Chinese venture capital firms as well as the China branch of Sequoia of the US.
Ele.me, which means "Are you hungry now?" was founded in 2009 by university students. Today it operates out of 200 cities with a staff of 2000 and a market share of 40%.
It is only in January 2015 that Ele.me raised USD 350 in capital. This money has apparently been spent already, mainly on promotions for customers and delivery drivers.
Ele.me is in fierce competition for market share with Meituan, in which Alibaba has a minority share, and with Nuomi, which is owned by search engine Baidu.