Internet, IPO, Tech

Tencent-Backed Business Service Provider Weimob Files For Hong Kong IPO

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Tencent-backed Chinese cloud-based commerce and marketing solutions provider Weimob Inc. has filed for an initial public offering in Hong Kong, according to its IPO prospectus.

Founded in 2013, Shanghai-based Weimob delivers its products and services primarily through Tencent’s social media app WeChat. It offers cloud-based commerce and marketing solutions through its SaaS products and targeted marketing services.

Its SaaS products help merchants to build personalized storefronts on social media platforms and manage their digital commerce operations, including product display, order intake and payment processing, customer relationship management and social media marketing.

It also provides Weimob Cloud platform, or Pass, designed for third-party developers to design, build and implement enterprise-grade custom applications. It had about 2.6 million registered merchants for its SaaS products and targeted marketing as of March.

In 2017, the company recorded revenue of RMB534 million, representing a 182% growth compared with RMB189.2 million in 2016. It booked net profit of RMB2.6 million in 2017, compared with a net loss of RMB81.2 million in 2016.

Its shareholders include Singaporean sovereign wealth fund GIC, China and South Asia focused private equity group Crescent Point, global private equity firm SIG and Chinese tech giant Tencent, with 8.33%, 8.33%, 2.16% and 3.43% stakes respectively.

In April, the company raised a US$160.3 million series D round led by Shanghai Free Trade Zone Equity Fund, V-Capital, Shanghai Guohe Capital, Zhejiang Paradise Silicon Valley Asset Management Group.

About 30% of the IPO proceeds will be used for enhancing its R&D development capability and improving its technology infrastructure, including purchasing more IT servers and equipment and hiring more IT talents.

About 25% will be used for pursuing strategic cooperation and investments. About 15% will be used for improving sales and marketing capabilities and another 10% will be used for purchasing social media advertising traffic for its targeted marketing business, according to its filing.

 


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