China's largest fresh produce e-retailer Fruitday.com has announced the completion of a US$70 million financing deal, with the country's largest online direct sales company JD.com (NASDAQ: JD) as the lead investor. 

The Series C funding is the largest financing round in China's fresh produce e-commerce industry to date.

Other investor groups include Susquehanna International Group (SIG) and ClearVue, both of which participated in previous financing rounds.

The funds raised will be used for infrastructure construction, recruitment of management talent, business development and strengthening of FruitDay's upstream supply chain system, according to a release.

As part of the investment, JD and FruitDay will enter into a strategic cooperation under which FruitDay will leverage JD.com's nationwide fulfilment infrastructure to help FruitDay expand to serve markets throughout China.

"FruitDay's dedication to providing Chinese consumers with the best possible experience shopping for fresh produce online has helped us become the clear leader in this fast growing vertical," FruitDay founder and CEO Wei Wang said.

"The financing announced today will allow us to continue strengthening FruitDay's market leadership as we build a world-class management team and further expand our cold chain logistics and upstream supply chain capabilities.

"We are delighted and honored that JD.com, China's largest direct sale e-commerce company, has recognized FruitDay's advantages in the fresh produce space. Our strategic partnership with JD.com will enhance FruitDay's ability to provide consumers throughout China with fresh produce from around the world in the safest, fastest and most convenient manner."

JD Mall CEO Haoyu Shen said the two companies were 'natural partners' due to their shared commitment to providing consumers with the best online shopping experience.

"By combining JD.com's online e-commerce platform and nationwide logistics infrastructure with FruitDay's vertical leadership, more and more Chinese consumers nationwide will have the ability to purchase safe and healthy fresh produce online with confidence," Shen said.

"As we build China's premier online e-commerce platform, JD.com will continue to explore long-term partnerships with leaders in key vertical markets."

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