Steven Millward · · 2 min readAlibaba’s most dangerous new rival set for $24 billion IPO
Photo credit: Pete Bellis / Unsplash
It’s gone from zero to taking a near-US$40 billion slice of China’s trillion-dollar online shopping industry in just three years.
And now Pinduoduo is looking to fuel its rapid rise with an IPO in the US later today that’ll raise $1.6 billion and value it at US$24 billion. This morning in New York it set a price of US$19 per share for its imminent NASDAQ debut.
The new online bazaar has nabbed third place in China’s ecommerce market with with 5.2 percent of sales, putting it behind only Alibaba and JD, says research firm Emarketer.
Among its big-name investors is Tencent, maker of WeChat.
Pinduoduo’s shoppers:
| Active shoppers | 343.6 million |
| Daily shoppers | 56 million |
| Spending | US$38.7 billion |
| Average annual spend | US$112 |
| Orders | 7.5 billion |
| Merchants | 1 million |
(Data: Pinduoduo; 2017 or 12 months up to March 31, 2018)
Pinduoduo’s biz:
| Revenue | US$278 million |
| Losses | US$95 million |
Meet the CEO
China biz summer heatwave:
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