Pinduoduo files for $1bn US IPO
Popular Chinese ecommerce platform Pinduoduo is to float on the US stock market. Walnut Street Group Holding Ltd, which operates Pinduoduo, is seeking a US IPO according to a filing with the Securities Exchange Commission on 29th June, which could be worth up to $1bn.
Founded in 2015, Pinduoduo allows users to participate in group buying deals to avail of lower prices through bulk buys. The platform is largely used via Tencent’s WeChat platform and is aimed at low income consumers from lower-tiered cities across China. In 2017, it saw 4.3bn orders placed.
In a letter to shareholders as part of the SEC filing, the company stated: “We envision Pinduoduo to be an organisation that reports to the public. It should create value for the public… we want it to be an independent organisation that brings value to society with its unique organisational structure and corporate culture. Most importantly, it should continue to strive to better itself.”
Founder Colin Huang said that Pinduoduo is dedicated to developing the space between cyberspace and physical space. He told shareholders the platform “leverages a platform and an ecosystem comprised of hundreds of millions of users, merchants, platform management personnel/operators and platform infrastructure/service providers”. He explained: “While each player is interdependent with one another, they constantly try to balance cost-effectiveness, efficiency, user experience and satisfaction.”
He said of the future: “I hope our team wakes up feeling anxious every day, never because of share price volatilities, but because of their constant fear of users departing if we unable to anticipate and meet users’ changing needs… Pinduoduo is dedicated to investing in the future and will always focus on the long term.”
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