BEIJING: Chinese grocery app Dingdong Maicai has raised $700 million in its so-called D-round of fundraising, boutique investment bank Cygnus Equity said on its official WeChat account on Tuesday.

Cygnus joined the fundraising both as an investor and financial advisor.

The startup will use the funds to expand into new areas and improve supply chains, the bank said.

Dingdong Maicai - Chinese for "Dingdong buy vegetables" - was established in 2017 in Shanghai and is backed by venture capitalist Sequoia Capital China.

The COVID-19 pandemic has driven a rising number of consumers to shop for fresh vegetables online from e-tailers such as Dingdong Maicai. However, the online grocery is highly competitive, with platforms backed by internet giants Tencent Holdings Ltd, Alibaba Group Holding Ltd and JD.com Inc.

Dingdong Maicai could not be reached for comment.