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Photo: Bloomberg
A Chinese e-commerce site called Pinduoduo, or PDD, plans to raise at least $ 1 billion in a first call US-based public, The Shanghai-based company saw its revenue more than triple to $ 278 million in 2017, according to its filing with the US Securities and Exchange Commission, under the name of Walnut Street Group Holding Limited. Losses rose 55 percent to $ 79.5 million as trading volumes reached 141.2 billion yuan
DDP has become one of the fastest growing startups in China by creating a kind from Facebook-Groupon mashup. clothes or toilet paper, then recruit friends to buy at a reduced price. It offers goods up to 20% cheaper than the market price by allowing consumers to buy directly from manufacturers, removing middlemen, advertising costs and acquisition.
The company was founded by Colin Huang, a former Google engineer. Sequoia Capital China as a Funder
Valuation Jump
Pinduoduo saw its valuation jump about 10 times during its previous round of fundraising in April. He raised more than $ 1 billion, at a valuation of about $ 15 billion, the familiar people said at the time.
In addition to its reputation for low prices, DP has benefited from a broad base of users in lower-tier cities. The idea behind PDD is to give people a different experience than traditional e-commerce sites like Amazon.com or Alibaba, where buyers tend to plug in a keyword and then pick an article after sorting a few options.
Pinduoduo's Daily active users surpassed those of JD.com in January and reached 55.9 million in June, according to a study by the Jiguang consultant based in Shenzhen. The Taobao application of Alibaba had 172 million daily active users and 34.3 million Jordanian dinars.
Huang started his career in Silicon Valley before returning home to become a serial entrepreneur. Its application is supposed to look more like a digital version of shopping at the mall with friends, where you can share ideas and get feedback from people you trust.
Bloomberg
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