(Yicai Global) March 9 -- Wangjiahuan, a leading Chinese distributor of farm produce and food ingredients, has raised CNY600 million (USD86.4 million) in a B-round fundraising led by lifestyle platform Meituan Dianping and its original shareholder Hidden Hill Capital.

The funds will be used to promote Wangjiahuan's nationwide partnership plan, and set up an urban shared delivery center and a county-level rural development hub, online tech media 36Kr reported today, citing Chairman Gao Jun. It is the largest single investment in China's group meal food distribution sector in recent times.

Shenzhen-based Wangjiahuan aims to rival Sysco, the world's biggest food supplier, Gao added. Houston-based Sysco has more than 330 distributors in Europe and the US, with a market capitalization of over USD34 billion as of March 7.

The money will also go to set up more efficient purchase and sales platforms for farm produce and for improving platforms that trace the quality and safety of agricultural products, the report added.

Founded in 1995, Wangjiahuan has over 130 branches and units, and serves as the commissioned merchant of more than 200 food brands, with almost 20,000 clients, among them government agency's, state-sponsored institutions, schools, hospitals, chain caterers and big supermarkets.

It wrapped up an A-round fundraising in August, 2018, with the main investor being GLP, a Shanghai supplier of logistics facilities and industrial infrastructure. The firm's value was not disclosed after either round.

Editor: Peter Thomas