Chinese e-commerce player Pinduoduo files for US$1 billion US initial public offering
PDD offers merchandise at up to 20 per cent cheaper than market price by letting consumers buy directly from manufacturers
A Chinese e-commerce service provider called Pinduoduo, or PDD, is planning to raise at least US$1 billion in a US initial public offering, as it fights for market share against giants including Alibaba Group Holding.
The Shanghai-based firm saw revenue more than triple to US$278 million in 2017, according to its filing to the US Securities and Exchange Commission, under the name Walnut Street Group Holding. Losses rose 55 per cent to US$79.5 million, while transaction volumes reached 141.2 billion yuan (US$21.3 billion).
PDD has become one of the fastest-growing start-ups in China by creating a sort of Facebook-Groupon mash-up, where people spot deals on products such as fruit, clothes or toilet paper, and then recruit friends to buy at a discount. It offers merchandise at up to 20 per cent cheaper than market price by letting consumers buy directly from manufacturers, cutting out middlemen, advertising and acquisition costs.
The company was founded by ex-Google engineer Colin Huang and counts Tencent Holdings and Sequoia Capital China as backers.
Pinduoduo saw its valuation jump about 10 times in its previous round of fundraising in April. It raised more than US$1 billion, at a valuation of about US$15 billion, people familiar said at the time.