Tencent-backed Chinese e-commerce firm Pinduoduo set to raise $6b

Visual from Pinduoduo website

Nasdaq-listed Chinese e-commerce giant Pinduoduo Inc (PDD) is set to raise a corpus of $6.1 billion by pricing its offerings of convertible notes and equity, the firm announced on Wednesday. 

PDD has offered $1.75 billion in convertible senior notes due in 2025, as well as priced an additional offering of 28.7 million American Depositary Shares (ADS) at $1.25 apiece. When the greenshoe option is exercised in full, it will also sell $250 million in notes and 4,305 million ADS. The offer was oversubscribed. 

Proceeds from the move will be leveraged to enhance its balance sheet and to invest in infrastructure including business operations expansion, acquisition advancement, and partnership forging. 

Meanwhile, the company expects to support investments in agriculture and manufacturing in a bid to empower producers to advance their value chain, it said in the statement. 

With headquarters in Shanghai, five-year-old PDD is one of the largest e-commerce platforms in China. It offers consumers with value-for-money purchases and social networking shopping experience. PDD was listed in Nasdaq in 2018 raising $1.6 billion.

PDD registered 628.1 million annual active buyers as of March 2020. It’s GMV in the twelve months period ended March 31 stood at 1.2 trillion ($182 billion), per its recent press release.

In August this year, PDD launched Duo Duo Maicai for selling fresh produce. It allows customers to order food products online and to pick up at local outlets. PDD targets to invest in logistics infrastructure with an aim to expand Duo Duo Maicai across more provinces in China, CNBC reported on November 16. 

“We are seeing large-scale changes in consumer habits as a result of COVID-19, which are accelerating digital transformation across different sectors,” said Chen Lei, Chief Executive Officer of Pinduoduo, in the statement,

“We are constantly evaluating how technology can be deployed to meet these changing preferences. We are prepared to invest capital and resources to improve our platform and build infrastructure to capture key opportunities,” he added.

Chinese tech giant Tencent is a long-term investor in PDD. It’s investment arm Tencent Investment had initially partnered Cathay Capital, Gaorong Capital, Lightspeed China Partners, and others collectively pouring $110 million in a Series B round funding in Pinduoduo in 2016. 

Subsequently in 2017, Tencent Investment, Cathay Capital, Gaorong Capital, and Sequoia Capital China together pumped $230 million for PDD’s Series C round. In 2018, Tencent Investment along with Sequoia Capital China infused $1.37 billion in a Series D round funding in PDD. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.