Source: Yicai Global
Oct. 25 -- It has taken Pinduoduo just four years to become China's fourth-biggest internet company by market capitalization after its stock price jumped over 12.5 percent yesterday, valuing the e-commerce giant at almost USD46.5 billion, compared with rival JD.Com's USD44.8 billion.
The group-buying e-commerce platform operator overtook internet company Baidu -- now worth USD36.1 billion -- in late August. But Alibaba Group Holding, Tencent Holdings and Meituan Dianping are still much more valuable at USD449.3 billion, USD385.3 billion and USD67.7 billion.
Large and sustained improvements in Pinduoduo's performance indicators may have contributed to a near-80 percent gain in its shares [NASDAQ:PDD] since the end of July.
On Oct. 10, founder and Chief Executive Colin Huang told staff at the Beijing-based firm's fourth birthday party that the platform's gross merchandise volume, a metric of profitability, had surpassed JD's in the most recent quarter, Yicai Global understands.
Pinduoduo's GMV almost doubled to CNY709 billion (USD100 billion) in the 12 months ended June 30 from a year earlier, according to company figures. The number of active buyers jumped 41 percent to over 483 million. Second-quarter operating revenue gained more than one and a half times to CNY7.3 billion, beating expectations for CNY6.2 billion. Its net loss narrowed to CNY1 billion from CNY6.5 billion in the same period a year earlier.
Formed in 2015, Pinduoduo initially attracted middle-class buyers in China's third- and fourth-tier cities with relatively low prices. Many consumers in first- and second-tier cities have since become users as more high-end brands were added to the platform.