Chinese’s Pinduoduo seeks US$1 billion
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Chinese e-commerce startup Pinduoduo is seeking US$1 billion in a US IPO, going head to head with industry giants such as Alibaba.
The company’s business model, in which users recruit friends via social media to enjoy group-discount offers direct from manufacturers, has seen its transaction volumes reach 141.2 billion yuan (US$21.3 billion) in 2017, tripling the company’s revenue. It was founded by ex-Google engineer Colin Huang and is backed by Tencent and Sequoia Capital, among others.
Pinduoduo raised more than US$1 billion in its last fundraising round in April, against a valuation of around US$15 billion. Its sales have been strongly supported by its large user base in lower-tier Chinese cities. The site’s daily active users reached 55.9 million last month, more than 20 million more than the popular JD e-commerce platform.
Questions & Answers
Q.What is the primary business model Pinduoduo uses to attract customers?
What is the primary business model Pinduoduo uses to attract customers?
Pinduoduo encourages users to recruit friends via social media to access group-discount offers directly from manufacturers. This social commerce approach drives sales and user engagement for the platform.
Q.Which prominent investors are backing Pinduoduo?
Which prominent investors are backing Pinduoduo?
The Chinese e-commerce startup Pinduoduo is notably backed by major technology company Tencent. Also, investment firm Sequoia Capital is also among the other supporters of the company.
Q.How much money did Pinduoduo raise in its most recent funding round, and what was its valuation then?
How much money did Pinduoduo raise in its most recent funding round, and what was its valuation then?
In its last fundraising round, which took place in April, Pinduoduo successfully raised more than US$1 billion. At that time, the company was valued at approximately US$15 billion.
Reader pulse
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