INVESTCORP BACKS CHINA’S INSTANT FOOD BRAND MO XIAOXIAN IN 4TH REGIONAL FORAY

PUBLISHING DATE

As part of a growth strategy targeting food-related companies in Asia, Investcorp has completed an investment in Mo Xiaoxian, an instant food brand in China. The deal was concluded through Investcorp’s Asia Food Growth Fund I through a joint venture established with China Resources Capital Management and Fung Strategic Holdings Limited.

Mo Xiaoxian was established in 2017 and its diversified products include self-heated hotpots and rice dishes, as well as instant vermicelli and noodles. It is claimed to be one of the top selling brands in the self-heating hotpot category on e-commerce channel Taobao, part of Alibaba.

Investcorp Hazem Ben Gacem
Hazem Ben Gacem: “With China’s growing middle class we see attractive opportunities in the instant food sector.”

The Shanghai-based company employs around 200 employees and has a multi-channel online and offline sales network with over 700 distributors and a presence in over 46,000 retail outlets to date.

Looking to scale up in the food sector

Hazem Ben-Gacem, joint CEO of Investcorp and chairman of the investment committee for Investcorp’s Asia Food Growth Fund I, commented: “With China’s growing middle class we see attractive opportunities in the instant food sector. The investment in Mo Xiaoxian is the right fit for us as we continue to expand in Asia. We look forward to working closely with the company’s management team in realising its full potential.”

The transaction marks the fourth investment that the fund has made in Asia’s highly fragmented food and beverage sector. It follows investments in Viz Branz, City Super Group, and Heritage foods.

Investcorp’s JV partners are big players. China Resources Capital Management is the private investment arm of China Resources Group, a Fortune Global 500 enterprise and owner of China’s largest supermarket chain Vanguard, while Fung Strategic Holdings is a member of the private investment arm of the families of billionaires Victor Fung and William Fung.

India is another big focus for Investcorp in Asia.

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