By Jon Russell
The price of competing with e-commerce giants Alibaba and JD.com is immense. That’s evidenced by challenger Pinduoduo, commonly known as PDD, which is raising more than $1 billion in fresh capital just six months after it went public.
The company announced plans to sell 37 million shares in a move that will raise over $1 billion, going potentially as high as $1.25 billion if underwriters exercise their full share purchase option. The secondary event will also see a number of existing backers sell a portion of their stock, those sellers including Sequoia China, Lightspeed China and Banyan, according to a filing.
PDD went public in July when it raised $1.6 billion through a Nasdaq listing.
Founded in September 2015 by ex-Googler Colin Huang, it adds a social twist to e-commerce by offering discounts for shoppers who gang up with friends or family to make group orders. That’s resonated in particular with consumers, who tend to be female, the company said. PDD claims 385.5 million active buyers with an annual GMV of RMB 344.8 billion, or $250.2 billion, as of Q3 2018.
That’s helped it make a dent in China’s e-commerce …read more
Source: Tech Crunch