Chapter 292 [Food Benefit Group] Re-financing

One month later, Shenzhen.

Zhang Yang came from Shanghai to take over the work: "Boss Yang, in the past month, our [Food Benefit Group]'s takeaway business has already taken up 60% of the market share in Shanghai."

"School is about to start. How are the businesses settling in near Shanghai University?" Yang Xiao asked.

"We have basically opened up all the channels. We have recruited all the merchants that have entered Ele.me. We have everything they have."

Zhang Yang was quite proud of this and said, "Thanks to your previous live broadcast in Shanghai, Mr. Yang, our [Food Benefit Group] has been a hot topic since then. With your influence, our company has a good reputation among young people. School is about to start again, and this time we will definitely drive [Ele.me] out of the campus market!"

"Don't be too happy too soon. The current market share was gained by spending money. When you can attract those merchants that even Ele.me can't afford to take over to our platform, it won't be too late to claim credit for it!"

Upon hearing this, Yang Xiao did not give Zhang Yang any positive feedback, but instead poured a bucket of cold water on him.

Zhang Yang did not dare to refute at this time, and smiled awkwardly:
"Alas, some catering businesses are the kind of old people in their 40s and 50s who can only use keypad feature phones and can't even use smartphones. It's too difficult to promote them on the ground!"

"Are they all good communicators and reasonable people waiting for you to discover? That's not going to happen!

Zhang Yang, remember, the market is so cruel. Everyone will encounter a group of tough bones to chew in the end. Whoever can chew them will have the last laugh. "

Yang Xiao said, "Nowadays, we are all spending money to grab the market, constantly providing coupons to users and subsidies to merchants, but the real core is still the establishment of our sales team!"

"Boss Yang, we are strengthening the training and building of the sales team. We have even changed the commission plan for foreign sales personnel several times just to stimulate everyone's motivation!"

Zhang Yang answered with a serious face, and could only follow Yang Xiao's instructions.

At this time, there are no dedicated machines for taking takeout orders.

This thing is expensive and costly, and its usage is not mature as a whole due to the fact that food delivery is not yet fully popularized, so it cannot be made at all.

Faced with such difficult merchants who “can’t even use smartphones”, we can only rely on a strong field sales team to convince this group of people.

What's more, we need to have salespeople on the ground to teach them how to use smartphones and food delivery apps!
All we can say is that whoever has a strong sales team can capture this "uncivilized" market.

This is their shortcoming.

Fortunately, even the sales team of Ele.me did not go to this extent.

Yang Xiao had no choice.

A month ago, this show about the [Food Benefit Group] live broadcast, due to the subsequent promotion of the Internet water army and the ability to buy off some media, actually wrote a soft article about Yang Xiao’s "online love crash" incident that happened while delivering food.

Naturally, the word "food benefit group" must be mentioned in the middle.

Such a coincidence is bound to be questioned.

However, there is no such thing as a live broadcast script now, and these questioning voices did not cause much waves. The public would rather believe the authenticity of this incident.

So, generally speaking, Yang Xiao’s live broadcast hype was successful.

Although it may not be able to reverse the downward trend immediately, it will still have some effect.

In addition, in the following month, [Shihuituan] continued to burn money and seized a certain market share from [Ele.me], so it may be able to win the other party in the campus market.

At the same time, with these waves of hype and subsequent promotion at any cost, [Food Benefit Group] has barely gained a certain degree of fame in Shanghai and has established a firm foothold.

However, this effect was achieved only because Ele.me did not take many countermeasures.

For this stuff, users all have the mentality of getting a bargain.

Compare prices on multiple platforms and use the one that offers discounts or is cheaper.

Users are just fence-sitters.

As far as Yang Xiao knows, in the face of the counterattack of [Shihuituan], the fierce dragon that crossed the river, [Ele.me] founder Zhang Xuhao has stood up and called the media to publicly announce that they will start the next round of financing! At the same time, they will continue to lay out takeaway channels in multiple cities to compete with [Shihuituan].

In this media interview, the other party did not mention the word "Food Benefit Group" at all.

However, the response measures have been given.

That is, not only Demon City is their battlefield, but other cities as well!

Although the overall scale of [Ele.me] in the country is not as large as that of Yang Xiao’s [Food Benefit Group].

But the other party also has capital support, several years of experience in deep market development, a mature team system, etc.

These are also the opponent's advantages and should not be underestimated.

By the time the situation really escalates to the point where both sides start burning money, it will be hard to say who will win.

But for platforms like food delivery and group buying, once they start burning money, it means they can’t stop.

Either completely occupy the market in a certain place and completely devour the opponent.

Or you get kicked out by the other side.

Unless the relevant departments come forward to mediate!
Like Meituan in later generations, even if there is Ele.me in the same city, the current situation is actually no different from a monopoly.

The same is true for Ele.me. In some cities, there is hardly any Meituan presence at all, which seems like a north-south governance system.

This is actually a case of intervention by relevant departments.

Otherwise, [Ele.me] would have been destroyed by [Meituan] long ago!

In the current takeout market, speaking across the country, the only ones that are really famous are [Shihuituan] and [Ele.me].

The so-called quick step, step by step quick.

Yang Xiao’s focus has recently been on the [Food Benefit Group], and he must speed up his efforts to get ahead of [Ele.me].

The financing that Zhang Lei of Hillhouse Capital, Alibaba, IDG and other venture capital firms sought a few months ago has almost been spent.

Yang Xiao is in Shenzhen at this time, preparing for the B round of financing for [Shihuituan].

Shenzhen City, Shennan Building.

In the reception room of [Shiguang Culture Media].

All the investors who participated in the previous A round of financing of [Shihuituan] are now included.

Yang Xiao was sitting in the main seat at this time, holding a bunch of documents in his hand. He looked around at everyone and announced the financing plan to the public:
"Everyone, at present, [Food Benefit Group] has a 50% market share in Yanjing, 60% in Shanghai, 90% in Shenzhen, and basically 80% in the entire Guangdong Province. Branches in most provincial capitals have also been launched and have made some gains.

In the coming year, I plan to start building the [Food Benefit Group] market in prefecture-level cities in all provinces except Guangdong Province in the first half of the year, and then in all major districts and counties. So please come, I plan to sell 20% of the overall market for the next round of financing.

[Food Benefit Group] I have asked a professional organization to conduct an evaluation, and the current valuation is about 60 billion. I have sent the evaluation report to you before.

Some of the institutions here are shareholders who have been in the A round and have priority to follow up with the investment. This time, please sit down and discuss how much you want to take in. "

As soon as the words fell, everyone was silent for a moment, and couldn't help but look around.

Finally, Tong Chen, the representative of IDG Capital, said with a serious face:
"Mr. Yang, it's only been a few months since the last round of financing, less than half a year, right? Has [Food Benefit Group] already spent all the money it raised? Are you so eager to start the next round of financing? Moreover, most cities have not yet been fully occupied. Now that you are moving so fast, don't you care about other food delivery platforms taking advantage of the opportunity to offer discounts to counterattack the market and lose the good situation again?"

"Boss Tong, you have too many questions. First, the company's accounts are there, and the shareholders' meeting can check them.

In addition, the cost of completely occupying the market is not something that the current [Food Benefit Group] can achieve.

As for the fact that [Shihuituan] can have such a high valuation now, it is because it is No. 1 in the national market and has such a large stall, so it has such a high valuation! I think you know these things better than anyone else.

As for the other questions, I am too lazy to answer them. To sum up, there is only one answer. That is, the decision-making power of the [Food Benefit Group] is mine, and you have no right to interfere. "

Yang Xiao glanced at him. IDG currently only held 5% of the shares and was just a small shareholder. He had no intention of giving the other party a good face.

"Also, you can choose not to follow the investment this time. I believe others here will be interested."

"Mr. Yang is right. We at Hillhouse Capital support Mr. Yang's decision. Mr. Yang's previous live broadcast in Shanghai was very effective. Mr. Yang sacrificed his personal traffic and even saved advertising fees. Mr. Zhang praised his spirit of "selfless dedication" behind the scenes."

Zhang Lei of Hillhouse Capital was not present, but sent another representative of Hillhouse Capital named Li Yue.

For this round of financing, Yang Xiao had already reached a consensus with Zhang Lei in private, and the latter decided to take the lion's share.

Li Yue stood up to help at this time, which was actually something they had planned long ago.

Tong Chen was being criticized at this time, his face looked rather ugly, and he glared at Li Yue unhappily.

There are even rumors that Zhang Lei is Yang Xiao's major shareholder. In the eyes of outsiders, Yang Xiao is Zhang Lei's spokesperson in the field of free WIFI.

Even the shares of [Qingsongke Technology Company], which is most favored by the outside world, are also owned by Hillhouse Capital. The two have long been in cahoots.

Including Tencent becoming the third largest shareholder of Yinhan Technology, the cooperation was facilitated by Zhang Lei.

After all, as a leading company in the mobile gaming industry, these are signals that can easily be misinterpreted by the outside world.

Who made Yang Xiao never come out to explain?

Tong Chen felt a breath of frustration in his chest. As a venture capital firm, he rarely suffered setbacks.

But he had no choice. Yang Xiao chose IDG for the first round of financing only because their bid was the highest.

In front of Yang Xiao, there was not much picture at all.

In addition, Yang Xiao is different from the founders of small startups who are easily manipulated.

The other person is already wealthy, so he won't care about him at all. He will be the only one who will be embarrassed!
Moreover, Yang Xiao was only concerned about the terms in the contract at this time. To be honest, he didn't care even if IDG withdrew its investment now.

Because he can always find someone to take over!
Even if he bought back these shares himself, he wouldn't even blink an eye, and even hoped that IDG would get out of here as soon as possible!

Tong Chen also recognized the situation and did not dare to act tough. Instead, he pondered for a moment and said submissively:

"Mr. Yang, what are you talking about? I am just a little worried. As Mr. Li from Hillhouse Capital said, your efforts during this period are obvious to all. We at IDG are definitely willing to follow in the B round of financing, and we will invest the largest proportion. Don't worry."

“Haha, are you willing to follow? That depends on how much is left for you. You’re picking it now.” Li Yue smiled and continued to counterattack.

"you"

"Okay, everyone, stop arguing."

A representative from Alibaba’s investment department stepped out to smooth things over. This person’s name was Wu Wei, and she would later become the general manager of Alibaba Group’s investment strategy department.

"Mr. Yang! I have read the previous financial statements of [Food Benefit Group]. Your company has invested a lot in building sales channels, but the results have been less than ideal. After this round of financing, will you make strategic adjustments in this regard? Here, I need your answer, which will determine the investment amount of our Alibaba."

Wu Wei is much more tough than Tong Chen. The payment channels of [Food Benefit Group] are currently connected to two payment channels: online banking and Alipay.

Although the two parties are developing in a cooperative manner, Alibaba has some say in this regard.

Yang Xiao nodded, giving him some face, and answered his question:
"Mr. Wu, this is a good question. This will be the first problem I will vigorously solve after I raise funds. In addition, regarding this issue, after this meeting is over, Mr. Wu, please stay. I have something to discuss with you."

"You want to talk about something?"

Wu Wei was a little curious, but he did not continue to ask questions at this time. Instead, he nodded and asked the second question about financing:

"Mr. Yang, since you mentioned the development of secondary and even lower markets, can you tell us how you plan to implement this? Which region will you start from?"

"Then let me explain here. Now Food Benefit Group has established branches in most provinces across the country. As for the district and county markets at the prefecture level and below, I plan to find regional partners to build the market.

Of course, the partnership format is not absolute. Not all prefecture-level cities will necessarily recruit partners to cooperate, but districts and counties must adopt this approach.”

"Regional partner? Mr. Yang, you don't want to outsource the business, do you?"

Tong Chen, who was standing by, was also an intelligent person. He understood the key point immediately and asked back.

"That's right! It's business outsourcing!"

"But."

Tong Chen thought about it, choked back two words, and was about to question Yang Xiao, but seeing that no one spoke, obviously agreeing with Yang Xiao's approach, he simply shut up and said no more.

There are only advantages and disadvantages to expanding the market through partnership.

The advantage is that it can really capture the market quickly, and both the capital and personnel investment are relatively small.

But at the same time, there are also many disadvantages. One is the management problem. The outsourced partners sometimes only follow orders and not announcements.

If the brand reputation is ruined due to poor management, it will take ten times the effort to make up for it later!

These include the dissemination of internal company policies and corruption, which are not surprising.

The most important thing is that these partners should share their bulk of the profits!
This move is totally a double-edged sword!

Seeing Tong Chen's expression, Yang Xiao knew what he wanted to say, but after seeing him stop talking, Yang Xiao did not call his name, but gave a unified explanation:

"I have done some research and found that in small counties and districts, there are also some small companies that specialize in food delivery. To be precise, they are not just contracted to do food delivery business for some large restaurants, but "running errands" is their main business.

Districts and counties only need to send a small number of core personnel to control a mature and powerful delivery team and channel system. Even if there are some minor problems in the process, I think it is worth it. "

"Boss Yang, we support your decision!"

Zhang Yue, a representative of Hillhouse Capital, was the first to stand up and support the plan, saying, "Our primary goal is to build the largest national market as quickly as possible!"

There are also several retail investor representatives here, and together they hold 5% of the shares of [Food Benefit Group].

They were sent by Zhao Wanlin and several small capitalists in Beijing to help Yang Xiao promote his products.

It is precisely with the help of these people that a place like Yanjing, where there are all kinds of people, can occupy 50% of the market in a short period of time.

Although these are means of offering discounts at any cost, it is not easy.

They had no share in this round of financing, but the orders they received were that they should support whatever Yang Xiao said without thinking!

I dare not sing the opposite tune at all!
At this time, Ali's Wu Wei did not speak, but he was nodding, obviously agreeing with the decision.

"Damn it, is Yang Xiao trying to make the pie bigger and then cash out and run away? Forget it, even if Yang Xiao is currently taking some risks, it's a good thing. Just look ahead to see the direction of the wind."

Seeing this, Tong Chen from IDG felt that his worries were unnecessary.

No matter what, [Shihuituan] is now No. 1 in the industry. The advantage is mine, and it should be no problem for Yang Xiaolang to take over.

The financing meeting ended quickly.

They all need to go back and decide how many shares they want to subscribe for the transferred equity, and then they have to sit down and negotiate again.

The head of Alibaba's investment was invited aside by Yang Xiao:
"Boss Wu, I'd like you to be a middleman and help me contact someone that was previously demoted from your Alibaba."

(End of this chapter)