Three-year-old Chinese e-commerce websites for a $ 1 billion IPO in the United States

Pinduoduo, the third largest e-commerce site after Alibaba and JD.com in China, filed an initial public offering in the United States to raise up to $ 1 billion on Friday , which surprised the market as a company Founded in September 2015 by a former Google software engineer, Colin Huang, the Shanghai-based company is known for its Groupon-style business model, which encourages consumers to buy similar essentials with their friends. and other internet users in order to receive significant discounts on prices because mechanics are able to offer lower prices because of large quantities.

UBS, Goldman Sachs and CICC are the underwriters of the US Pinduoduo listing. the stock exchange that will host its initial public offering, according to a news report from Sina on July 1.

Pinduoduo's revenue comes mainly from online advertising and commercial commissions. Since its inception, the turnover has grown at a high rate, just like the losses, according to the report.

Pinduoduo's gross merchandise volume reached 141.2 billion yuan and 66.2 billion yuan in 2017 and the first quarter of 2018 respectively. The business turnover reached 1.7 billion yuan in 2017 against 505 million yuan a year earlier, while the company also reported 292 million yuan and 525 million yuan of net losses in 2016 and 2017, respectively. The income and net loss in the first quarter of 2018 were 1.4 billion yuan and 201 million yuan, according to the filling document

for the 12 months ended March 31, active buyers on Pinduoduo reached 295 million. million. According to the company, Pinduoduo has completed the last round of fundraising in April, when the company raised about $ 3 billion, led by Tencent and followed by Sequoia Capital China. The founder Huang, who owns 50.7 percent stake in Pinduoduo, said the company had filed an IPO application in the United States less than three years after its creation because "its kind company has a strong social nature, therefore, it should eventually go to the public and share its growth with the public. "

" We believe that there is great potential in Pinduoduo ", has Huang said in a letter to shareholders, according to the Chinese report. "There is not really any difference between registration and registration over three years, five years or even longer, on the contrary, under the supervision of the public, we can grow better and more strong. "

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. (TechRepublic)

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