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On July 3, Chinese tech start-up BingoBox announced that it had received more than 100 million RMB in first-round financing. It is estimated that tens of thousands of customers have made purchases at the eight test stores since 2016. BingoBox plans to set up 5,000 stores nationwide within a year, after this round of financing is complete.

Shoppers at BingoBox’s 24-hour staff-free stores make purchases by scanning a label on the product at the automated self-checkout. Customers must scan another QR code before leaving the store to assure all items have been paid for.

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One problem the company is dealing with is that labels are sometimes ripped by customers. Wang Ying, BingoBox’s marketing vice president, said the company might adopt certain AI techniques to solve the problem in August.

Wang said that BingoBox’s own supply chain is also under development, with Auchan China being the main supplier at the moment. Once its own supply chain is developed, BingoBox will be able to monitor supplies in real time.

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“Rethinking purchases brings market opportunities, but it takes time to establish a brand. Only when unmanned convenience stores become more common can they profit,” said Mao Shengbo, a co-partner of Panda Capital.