Chinese social commerce startup Pinduoduo has hit US$100 billion in market capitalization in less than five years.
Just before the Chinese shopping festival “618,” the company saw its share price close at US$82.8 yesterday, double the price recorded at the beginning of this year.
Pinduoduo saw a remarkable jump in April when its market value rose to almost US$53 billion from US$38 billion in March.
Despite Covid-19, the company posted US$923.8 million in revenue for the first quarter, up by 44% from about US$642 million in the same quarter last year.
It also recorded US$163.4 billion in gross merchandise volume and 628.1 million active buyers for the fiscal year ended March this year.
Earlier this year, Pinduoduo raised US$1.1 billion in private share placement and invested US$200 million in Gome Retail Holdings, a household appliance and electronics retailer.
Read: How Pinduoduo’s success serves as a model for the rise of social e-commerce 🛍️
Meanwhile, its rival JD.com’s stock soared on the first day of trading in the Hong Kong stock exchange. The ecommerce giant priced its shares at HK$226 (US$29.16) apiece but opened at HK$239 (US$30.84). JD.com earlier announced it’s looking to raise US$3.8 billion through the listing.
According to Statista, China’s ecommerce market has raked in US$1 trillion this year. It’s expected to reach US$1.5 trillion by 2024 at an 8.6% compound annual growth rate. User penetration will also grow to 79.2% in 2024 from 64% this year.
Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.75.
Editing by Charmaine de Lazo
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