HCM SaaS+ Platform CDP Group Applies for Hong Kong Listing

Human capital management (HCM) SaaS+ platform CDP Group recently submitted another prospectus to the Hong Kong Stock Exchange, after its initial application lapsed at the beginning of this year, with CICC and BNP Paribas serving as co-sponsors.

HCM includes recruitment, employee performance and salary management, employee training, outsourcing and other business processes. Such fields can be divided into the non-SaaS model, which uses intensive manual power and offline organization, and the SaaS model, based on the online digital platform of cloud architecture.

CDP Group has pioneered a new-generation HCM SaaS+ business model in China, fully integrating cloud-based value-added services. The company’s employee-focused WorkLife application is tailored for the future of work and lifestyle. It provides a full range of HCM services including compensation, benefits, talent recruitment, talent development and employee management.

The company previously planned to go public in the United States, submitting necessary documents in 2019 and 2021. After evaluation, it thought that the overall depressed capital environment in the United States at that time was less than expected, and finally put the listing on hold.

According to the prospectus, CDP raised a total of about $130 million in six rounds before going public, and was valued at about $480 million after the last round funding. It has attracted investment from recruitment platform 51job, Morgan Stanley, Broadband Capital and CSV Capital Partners Ltd. Before the IPO, 51job, CDP’s second-largest shareholder, held 17.5 percent of shares in the company.

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As of May 31, 2022, CDP had a net loss of 140 million yuan ($20.2 million) and total revenue of 447 million yuan in the first five months this year. Its cumulative loss reached nearly 1.1 billion yuan in the previous three years. The company’s focus on its SaaS business may lead to larger losses.

According to China Insights Consultancy’s data, CDP Group is the top HCM SaaS+ platform in China and is also the top multinational HCM SaaS+ service provider in China.