China's venture capital 'godfather' Neil Shen exits board of food delivery giant Meituan

Neil Shen Nanpeng, the billionaire founder of Chinese venture capital firm HongShan, formerly Sequoia China, has stepped down as a non-executive director at Meituan after nine years on the board of the on-demand local services giant.

Shen, 56, retired from that role owing to "other business commitments", and there is no disagreement between him and the Beijing-based company's board, according to Meituan's filing to the Hong Kong stock exchange on June 14.

Known as China's venture capital "godfather" for his investments in some of the country's most successful internet companies, Shen earlier this month was ranked No 3 in Forbes' 2024 Midas List of the world's top 100 venture capitalists. The 23rd annual ranking primarily credited Shen for investing in social media powerhouse ByteDance, owner of hit short video platforms TikTok and Douyin.

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Shen's exit from Meituan's board, which he joined in October 2015, marks his latest high-profile corporate departure, after leaving similar roles at Shanghai-listed BTG Hotels in April and budget online retailer Pinduoduo in November 2022.

Meituan's food delivery riders make their way at a street in Guangzhou, capital of southern Guangdong province, on February 23, 2023. Photo: Elson Li alt=Meituan's food delivery riders make their way at a street in Guangzhou, capital of southern Guangdong province, on February 23, 2023. Photo: Elson Li>

Meituan and HongShan did not immediately respond to a request for comment on Monday.

HongShan had been gradually cutting its stake in Meituan since China's top food delivery services provider debuted in Hong Kong on September 20, 2018. The venture capital firm has cashed out more than HK$50 billion since 2018, and currently holds a 1.7 per cent stake in Meituan.

Shen still owns 0.17 per cent of Meituan in beneficial interest, according to the Chinese internet firm's 2023 annual results published earlier this month.

Sequoia China, which later became HongShan, was one of Meituan's earliest investors and took part in all of the company's fundraising rounds, according to Shen's public letter in 2018 during the internet firm's initial public offering in Hong Kong.

HongShan founder Neil Shen Nanpeng speaks at the Board of Changemakers forum during the FII New Compass conference in Riyadh, Saudi Arabia, on October 24, 2023. Photo: Catherine So. alt=HongShan founder Neil Shen Nanpeng speaks at the Board of Changemakers forum during the FII New Compass conference in Riyadh, Saudi Arabia, on October 24, 2023. Photo: Catherine So.>

US venture capital firm Sequoia Capital in June last year split its business into three geographic units, rebranding its Chinese arm as HongShan amid escalating trade tensions between the world's two-largest economies.

Apart from Meituan, Sequoia China had also backed other major Chinese technology firms, including Alibaba Group Holding, JD.com and Shein. Alibaba owns the South China Morning Post.

Meituan earlier this month reported a higher-than-expected 25 per cent year-on-year increase in revenue in the first quarter, citing gains from its core local commerce operations driven by food delivery.

Meituan is now moving to expand its footprint in international markets, according to co-founder and chief executive Wang Xing, who said in the firm's earnings call earlier this month that the company has been exploring opportunities in Southeast Asia.

Following its initial success in launching the KeeTa food delivery platform in Hong Kong, Meituan reportedly plans a foray into Riyadh, the capital and largest city of Saudi Arabia.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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