Pinduoduo, China’s Facebook-Groupon Mashup, Files for $1B US IPO
Published:July 1, 2018
Reading Time:2 min read
Pinduoduo, one of China’s largest e-commerce unicorns, looks to raise around US$1 billion in its U.S. initial public offering (IPO), confirming a report publish...
Pinduoduo, one of China’s largest e-commerce unicorns, looks to raise around US$1 billion in its U.S. initial public offering (IPO), confirming a report published earlier by Pandaily.
Pinduoduo revenues from online marketplace services and merchandise sales. Image Source: Pinduoduo IPO file.[/caption]
The Shanghai-based company founded by former Google engineer Colin Huang targets lower-income consumers in China’s vast low-tired cities. Branding itself as “Inaugurator of New E-commerce,” the company integrates social media with online shopping by allowing consumers to invite their friends to buy products together at a discount - up to 20% cheaper.
In the first quarter this year, its revenue jumped to US$220.7 million, compared with the US$5.9 million revenue from the same period in 2017.
[caption id="attachment_9082" align="aligncenter" width="720"]
the steps to complete a team purchase on Pinduoduo. Image Source: Pinduoduo IPO file.[/caption]
Pinduoduo said it has 300 million active buyers and one million merchants. In 2017, the number of transactions generated by its users on its mobile platform - excluding inflows from its website and other channels - reached 4.3 billion, while in the first quarter this year the number maintained a high level at 1.7 billion.
[caption id="attachment_9083" align="aligncenter" width="720"]
the key features of Pinduoduo team purchase option. Image Source: Pinduoduo IPO file.[/caption]
Backed by Tencent Holding Ltd., the company benefits from the large WeChat user base where people share shopping deals on Pinduoduo and invite their friends to participate in the Groupon-like purchases.
Though valued at about $15 billion in April after raising more than $1 billion according to Bloomberg, Pinduoduo reported losses of $79.5 million last year and $44.9 million from January to March this year.
SEE ALSO: Alibaba’s Worst Nightmare: Pinduoduo Becoming the No.1 E-commerce App in China
The three-year-old company, under the name of Walnut Street Group Holding Limited, saw its revenue more than tripled to US$278 million in 2017 from around US$79 million in 2016, according to its filing to the U.S. Securities and Exchange Commission earlier this week. [caption id="attachment_9084" align="aligncenter" width="720"] Pinduoduo revenues from online marketplace services and merchandise sales. Image Source: Pinduoduo IPO file.[/caption]
The Shanghai-based company founded by former Google engineer Colin Huang targets lower-income consumers in China’s vast low-tired cities. Branding itself as “Inaugurator of New E-commerce,” the company integrates social media with online shopping by allowing consumers to invite their friends to buy products together at a discount - up to 20% cheaper.
In the first quarter this year, its revenue jumped to US$220.7 million, compared with the US$5.9 million revenue from the same period in 2017.
[caption id="attachment_9082" align="aligncenter" width="720"] the steps to complete a team purchase on Pinduoduo. Image Source: Pinduoduo IPO file.[/caption]
Pinduoduo said it has 300 million active buyers and one million merchants. In 2017, the number of transactions generated by its users on its mobile platform - excluding inflows from its website and other channels - reached 4.3 billion, while in the first quarter this year the number maintained a high level at 1.7 billion.
[caption id="attachment_9083" align="aligncenter" width="720"] the key features of Pinduoduo team purchase option. Image Source: Pinduoduo IPO file.[/caption]
Backed by Tencent Holding Ltd., the company benefits from the large WeChat user base where people share shopping deals on Pinduoduo and invite their friends to participate in the Groupon-like purchases.
Though valued at about $15 billion in April after raising more than $1 billion according to Bloomberg, Pinduoduo reported losses of $79.5 million last year and $44.9 million from January to March this year.
