E-Commerce Seller Yunji Joined Trio of Chinese US IPO Seekers Yesterday
Zhang Yushuo
DATE:  Apr 23 2019
/ SOURCE:  yicai

(Yicai Global) April 23 -- The operator of Yunji, a social e-commerce platform that uses social networking sites like WeChat to sell products, yesterday applied for a listing on the Nasdaq Stock Market with the stock symbol 'YJ,' seeking to raise USD148 million to USD175.5 million.

The company, Zhejiang Jishang Youxuan E-Commerce, thus joined the ranks of Chinese Starbucks rival Luckin Coffee and game-streamer Douyu, who also bid for initial public offerings stateside in what proved to be a banner day for US capital markets courting of Chinese applicants.    

The Hangzhou-based firm, which was earlier dogged by controversy over its sales methods, will use the proceeds to expand its business, enhance its technology, improve its facilities and for general corporate purposes.

Created in 2015, Yunji has a total membership of 9 million, 7.1 million transacting members and a repeat purchase rate of 93.4 percent.

The firm's total revenues rose over fivefold to CNY6.44 billion in 2017 from CNY1.3 billion in 2016, and by more than double to CNY13 billion (USD1.89 billion) last year from CNY6.44 billion in 2017, its filing with the US Securities and Exchange Commission shows. It recorded net losses of CNY56.3 million (USD8.2 million), CNY105.7 million and CNY24.7 million in 2018, 2017 and 2016, respectively.

Yunji adopts a 'supplier to business to customer' multi-level distribution model akin to pyramid-selling that prompted authorities in Hangzhou to slap it with a CNY9.6 million fine in July 2017.  
Editor: Ben Armour

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Keywords:   Yunji,E-commerce