News

China's Pinduoduo receives USD 1.1 billion in share placement

Wednesday 1 April 2020 07:05 CET | News

Pinduoduo, a Chinese ecommerce company, has raised USD 1.1 billion in a private share placement, bolstering its ability to finance growth, despite recent market volatility.

The company plans to use the proceeds to help finance growth, upgrade users’ shopping experience and offer more subsidised products. It looks to close the transaction in early April 2020.

Pinduoduo, which competes with Alibaba and JD.com, offers discounts on products ranging from electronics to groceries but is under pressure as established players look to muscle in on its rural stronghold.

Nasdaq-listed Pinduoduo has secured several long-term investors including Chinese private equity firms Hillhouse Capital and Boyu Capital for the deal, two sources said for Reuters. The move comes just six months after Pinduoduo raised USD 1 billion in a convertible bond. In February 2019, it also raised USD 1 billion from a follow-on offering.

The recent market turmoil is widely expected to lift the need for already listed companies to sell more shares and raise fresh capital to weather the economic downturn.


More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Pinduoduo, funding, ecommerce, China, private share placement, finance, capital
Categories: Payments & Commerce | Ecommerce
Countries: China
This article is part of category

Payments & Commerce