Boqii Co., a Chinese online pet shop backed by Goldman Sachs Group Inc., is planning an initial public offering that could raise at least $100 million, according to people with knowledge of the matter.
The sale could happen this year, the people said, asking not to be identified because the information is private. The Shanghai-based e-commerce startup is considering selling shares in Hong Kong or the U.S., one of the people said.
Boqii is tapping into rising affluence as more households adopt pets in a Chinese market that Frost & Sullivan expects will more than double to 472 billion yuan ($70 billion) by 2023. The online platform has more than 12 million paying users, selling them food, providing listings for veterinarians and groomers and operating a social network for owners to share pictures of their animals.
A successful IPO would add to the $2.6 billion Chinese companies have raised via first-time overseas share sales this year. That’s a slow start compared with the $5.9 billion during same period of 2018, according to data compiled by Bloomberg.
A representative for Boqii declined to comment.
Goldman Sachs has been long-time backer of Boqii, investing in its series A fundraising, which was completed in June 2013, according to statement sent by the company. Boqii, which was founded in 2008, completed a $25 million series B funding in 2014 when Goldman invested again, it said in the statement. While its business focuses on dogs and cats, it also offers services for guinea pigs, turtles, rabbits and lizards.