(Bloomberg) -- Missfresh Ltd. is weighing selling stakes in a unit that offers services to fresh produce sellers including business consultation and setting up online stores, according to people familiar with the matter, as the struggling firm looks for a lifeline.

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The Tencent Holdings Ltd.-backed firm is working with advisers to gauge investor interest for its intelligent fresh market business, said the people, who asked not to be identified as the information is private. The process kicked off late last year and Missfresh is seeking a valuation of about $100 million for the unit, the people said. That’s higher than the New York-listed company’s market value of $79 million.

Deliberations are ongoing and may not lead to any transaction, they added. A representative for Missfresh didn’t immediately respond to requests for comment.

Any deal could help salvage Missfresh which has lost 97% of its market value since its US debut in June 2021. Founded in 2014, the company offers more than 4,000 products from vegetables and seafood to snacks and cooked food, and promises deliveries as fast as 30 minutes in 16 Chinese cities, according to its website.

It raised at least $1.5 billion in private funding rounds from an array of marquee investors including Goldman Sachs Group Inc. and Tiger Global Management. The startup raised about $273 million in its US initial public offering.

Missfresh’s shares started tumbling soon after its debut as China cracked down on the tech sector and intense competition in the grocery delivery sector eroded its margins. The country’s tech giants and investors are now hitting the brakes on neighborhood retail and community buying with hundreds of startups having gone bankrupt. Covid-19 lockdowns in the country have also disrupted grocery delivery’s logistics network.

Read More: China’s Massive Community-Buying Industry Is Collapsing

In April, Missfresh said it couldn’t release its annual report for 2021 and set up an independent audit committee to conduct an internal review of some questionable transactions. The review concluded this month that certain revenue was inaccurately recorded and the staff responsible resigned. There were several class actions filed alleging Missfresh fabricated its financials during the IPO.