Beijing-Based Buying Site Meituan Considering U.S. IPO.
A Chinese group discount website backed by Alibaba Group Holding, Meituan.com has been considering a U.S. Initial public offering as its forecasts sales to triple this year.
The company that offers a discount similar to that of Groupon Inc. expects transaction to more than double to 40 billion yuan ($6.42 billion) this year from 16 billion yuan from the previous year, Chief Executive Officer Wang Xing stated during an interview in Beijing. Revenue is forecast to triple up to a total amount of $300 million (1.9 billion yuan), he stated.
“In the future, yes,” Wang said when talking about plans for an IPO. “If you ask me now, I would prefer the U.S.
With over 90 million active mobile users and is at least 10 percent owned by Alibaba Group, Meituan is tapping into China’s soaring middle class, which is currently search out deals for entertainment and restaurant. Around 70 percent of the platform’s transacts are handled through Meituan’s mobile application as the company competes against Dianping.com, The Yelp-wannabe website backed by Alibaba competitors Tencent holding, which is Asia’s largest Internet company.
Wang commented during an interview that Meituan isn’t under short-term funding pressure and doesn’t want to be acquired.
“We prefer to grow independently because we believe the market is big enough,” he said.
Yelp has been shown to have a market value of about $3.9 billion and Groupon $4.13 billion, according to data gathered by Bloomberg.
By beginning to offer its services during March 2010, Meituan attracted $12 million from Sequoia Capital Operations LLC the same year and another $50 million investment led by Alibaba and Sequoia during July 2011. The company broke during the previous year, Wang said.
E-commmerce spending by Chinese consumers has been said to reach a near 3.3 trillion yuan by the year 2015. China has more than 618 million web users.
China’s biggest e-commerce company, Alibaba, filed during May 6 for what may become one of the largest IPO ever within the U.S. , the Hangzhou-based company owns somewhere between 10 to 15 percent stake on Meituan, Wang said.
Beijing-based Meituan offers local business-search services that include consumer-generated reviews. Users also can purchase coupons and receive group discounts.