As the race for dominance in China's shared kitchen industry rages on, Panda Selected, one of the leading companies in the country made a giant step forward with an additional $50 million in Series C funds.
Spearheaded by Tiger Global Management, a New York-based investment firm, the Panda Selected funding of $50 million brings in a total of $80 million for the project. Previous funds were provided by GenBridge Capital and DCM.
According to Tech Crunch, Panda Selected said it already has operations spread across 120 locations in China. These locations include Shenzhen, Hangzhou, Shanghai, and the country's capital of Beijing. The internet catering service platform also said it is cooperating with over 800 local catering brands including successful startup, Luckin Coffee.
In its profile, the catering-centered operator said the shared kitchens it offers are estimated at 5,000 square feet. Each space is said to accommodate up to 20 restaurants and brands.
In an interview with Bloomberg, Panda Selected Founder, Li Haipeng said the new funding will help double accommodation and expansion projects that will make it difficult for both local and international rivals to top.
Some financial analysts noted that China's shared kitchen market has been gaining headway over the past couple of months, with Panda Selected setting the standard in terms of speed in raising enough funds to bring its ideas to life.
Panda Selected has a model that capitalizes on delivery-only service. The idea is to save on overhead costs while meeting the demands of consumers who are largely opting for take-out food. Merchants can now rent spaces and get assistance with management supply.
According to Forbes, the Chinese market is largely transitioning into mobile orders and on-demand food delivery services. The food-delivery industry in China has a market value of $33 billion dollars, which accounts for two times more than its American counterpart.
In its official press release for the big announcement, Li discussed the company's future. "With this round of financing, we expect to further extend our leadership position by rapidly expanding to serve more cities and core business districts, more locations with more offerings, and continuing to improve services and help our merchants operate better and faster."
The model that Panda Selected introduced to the Chinese catering sect is expected to transform the industry for better, especially with food business owners struggling to afford the traditional model that requires huge capital.
Li explained that the food delivery giant's model will help catering businesses reach growth goals while reducing risks in operations, adding that it will help entrepreneurs adapt to easier and more efficient processes.
