On June 24th, Meiyou, a Chinese Internet company, withdrew their application for an IPO and listing in China.
In July last year, Meiyou, also known as Meet You, submitted a prospectus planning to raise RMB 1.87 billion.
Sources say that the Internet company is still advancing to go public but may list in the overseas market instead of the domestic exchange. Up until now, Meiyou has completed at least 8 rounds of financing, with investors including K2VC, Matrix Partners China, Puhua Capital, ZhenFund, Ruiyin Capital and Tomorrow Advancing Life.
Established in 2013, Meiyou works in online intelligent services for women. As of June 30, 2020, Meiyou has gained an accumulated user base of over 270 million, with more than 35 million monthly active users (MAUs) and more than 8.5 million daily active users (DAUs) in its apps.
Notably, compared with those disclosed in the prospectus, this data has increased significantly in the past year. According to QuestMobile, from July 1, 2020 to April 1, 2021, Meiyou’s app user base increased from 33.2 million to 38.07 million, the number of monthly uses increased from 570.65 million to 625.48 million, and the DAUs increased from 7.4 million to about 8.6 million in March 2021. The main business and source of income for the company is advertising services.
Between 2017 and 2019, the operating income of Meiyou rose from RMB 423 million, 516 million to 617 million, registering a compound annual growth rate of 20.72%.
As for why Meiyou chose to list overseas, an investment banker revealed that there are two reasons behind the move: First, the earlier the company goes public, the more favorable it is to conduct business. Second, for Internet companies especially, overseas markets often give higher valuations.
In fact, it’s not the first time that Meiyou has prepared an IPO. Data shows that Meiyou planned to go public in the United States in 2016. But given that its businesses are mainly operated in China and most of its users are Chinese, the company decided to focus on the domestic capital markets instead.