Alibaba Group has reportedly offered $1.5 billion to acquire Pupu, one of China’s largest remaining independent online grocery platforms, according to Bloomberg. The bid exceeds a competing proposal from Sun Art Retail, which reportedly valued the company at about $600 million.
The move comes several months after Meituan agreed to acquire the China operations of Dingdong Fresh for approximately $717 million, a transaction that is still awaiting antitrust approval.
Pupu operates a 30-minute delivery network across roughly 10 cities in Fujian, Guangdong, Sichuan, and Hubei provinces. The company reportedly generates annual revenue exceeding 30 billion yuan, or approximately $4.2 billion, making it one of the most valuable independent assets left in China’s instant retail market.
The platform maintains local warehouses stocked with fresh food, household goods, and consumer products. An acquisition would provide Alibaba with established logistics infrastructure, supplier relationships, and warehouse density that would otherwise take years to develop organically.
China’s leading internet companies, including Alibaba, Meituan, and JD.com, have been spending heavily to expand their presence in food delivery and instant retail. According to 36Kr, the three companies collectively spent at least 150 billion yuan over the past year on subsidies and promotions. During the height of the competition, daily order volumes reportedly surged from approximately 80 million to more than 200 million orders.
The bidding activity comes as Chinese regulators increase scrutiny of large technology companies. On June 11, regulators reprimanded Alibaba, JD.com, Pinduoduo, Douyin, and Xiaohongshu over promotional practices tied to the annual 618 shopping festival.
Alibaba previously sold its 73.7% stake in Sun Art Retail to DCP Capital for approximately $1.6 billion as part of a broader effort to focus on e-commerce and artificial intelligence. Analysts believe the Pupu bid signals that Alibaba remains committed to local commerce, but is shifting its focus from traditional retail assets to instant delivery infrastructure.
Investor sentiment reflected that view, with Alibaba shares rising as much as 3.5% in Hong Kong while Meituan shares fell as much as 3.1%.
Any transaction remains subject to ongoing negotiations, and no agreement has been finalized. A deal could also face regulatory scrutiny similar to Meituan’s pending acquisition of Dingdong Fresh.
