Alibaba Group is offering $1.5 billion to acquire Pupu, one of China’s last independent online grocery platforms, according to Bloomberg. The bid is more than double a $600 million proposal from Sun Art Retail, the former Alibaba affiliate now backed by private equity firm DCP Capital.
The move comes months after Meituan agreed to pay $717 million for the China business of rival Dingdong Fresh, a deal still awaiting antitrust approval. Pupu is among the last sizable independent grocery delivery companies in the country.
Why Pupu matters
Pupu operates a 30-minute delivery network covering roughly 10 cities across Fujian, Guangdong, Sichuan, and Hubei provinces. It generates annual revenue reportedly exceeding 30 billion yuan (approximately $4.2 billion), making it one of the most valuable remaining targets in China’s instant retail market.
The platform stocks fresh food, daily essentials, and fast-moving consumer goods in local warehouses. For Alibaba, buying Pupu would be a shortcut to warehouse density, supplier relationships, and cold-chain logistics that would take years to build from scratch.
