Pinduoduo has only raised one round of financing so far, and its only shareholder is Tengxun.
Tencent invested US$300 million and priced Pinduoduo at US$3 billion.
This valuation is not high compared to Pinduoduo’s monthly active users of over 100 million.
Tengxun understands that Pinduoduo intends to show good intentions, and they are also testing an idea.
Pinduoduo has developed rapidly by leveraging WeChat’s huge traffic.
So can they follow this model and copy another Pinduoduo?
No matter what they think, the two families are now in their honeymoon period.
The huge traffic of WeChat gives Pinduoduo super room for fission.
Especially the presence of my seven aunts and eight aunts and classmates and friends around me.
There is almost no one who has not been harassed by sharing a hacking link.
Pinduoduo relies on this model to develop steadily, and its monthly active users are rising bit by bit.
Zhuang Manting and others are not wary of WeChat. They have made a lot of efforts and tried to retain the users diverted from WeChat to their own app.
Tengxun supports Pinduoduo, which is more than just verifying the copy mode.
The promotion of WeChat payment is also a point that it attaches great importance to.
However, on Pinduoduo, Cao Cao payment is usually selected by default.
Unless the user clicks to expand more payment methods, they will see the WeChat payment page.
Of course, the Alipay payment function definitely does not exist.
Since Cao Cao Pay sponsored the Spring Festival Gala, Pinduoduo’s backend found that users who originally tended to use WeChat Pay began to choose to use Cao Cao Pay due to some subsidy activities.
For example, some activities that offer random discounts of 1-10 yuan can attract many people to use Caocao Pay specifically.
With one dollar, you can leverage dozens of dollars in transaction volume.
There are several pots of green plants placed in Zhuang Manting's office.
Behind the desk hangs a calligraphy treasure, a freehand graffiti by Chen Dongcheng.
The words "Houtang" are carefully framed.
After Chen Dongcheng saw it, he felt a little helpless: "It was written casually, why did you frame it?"
"I think it's well written."
Zhuang Manting looked at Chen Dongcheng with a gentle smile and said: "Let's get down to business first. Our current monthly active users have reached 15 million, and in the e-commerce field, we have surpassed Suning.com and ranked sixth."
Chen Dongcheng is very satisfied: "This is a good result. If we continue to maintain it, it won't be too far away to have over 100 million monthly active users."
Zhuang Manting said: "In January this year, our monthly GMV exceeded 3 billion, and it is expected that the full-year GMV will exceed the 100 billion mark."
GMV can be understood as sales + canceled order amount + rejected order amount + returned order amount.
As long as you submit the order, whether you pay or not, it will be counted.
Generally, JD.com and Taobao like to brag about their GMV exceeding one trillion, but that is different from the actual transaction volume.
Chen Dongcheng asked again: "How much income is expected this year?"
"It should be less than 2 billion, and the loss will be more than 500 million."
Zhuang Manting added: "Active buyers should reach 250 million before the end of the year."
Chen Dongcheng had already predicted that Pinduoduo’s model is simply about telling stories.
Keep telling a story about trading losses for prospects and starting to make profits at a certain point in the future.
If we want to continue talking about this model, the core element lies in user growth.
During this period, WeChat is Pinduoduo’s traffic cow and cannot be left behind.
Zhuang Manting said: "We have signed a five-year cooperation agreement with WeChat. As one of the conditions for Tengxun to invest in us, WeChat will open the entrance to WeChat payment to us."
The entrance to WeChat payment has always been a valuable resource that many Internet companies are eyeing.
WeChat has nearly one billion users, and even JD.com is willing to be a parasite and sit on WeChat to absorb their traffic.
25% of JD.com’s new users come from WeChat.
It's just that Pinduoduo's gameplay is too novel, and JD.com and Taobao haven't reacted yet.
Pinduoduo has over 100 million registered users and over 10 million monthly active users.
JD.com is slightly better. They and Pinduoduo are two tracks with different positioning.
JD.com focuses on high-end home appliances, and the unit price per customer is higher.
But Taobao is different. It started with low prices, and Pinduoduo is now shaking up its foundation.
When Lao Ma noticed Pinduoduo, Pinduoduo had completely opened up traffic channels.
There are several traffic pools worth over 100 million.
Except for WeChat, Douyin, Little Blue Book, and Cao Cao Pay, which traffic entrance does not exceed 100 million.
Even if Lao Ma wants to use means to block him, he can't find a way. You ask, will WeChat give Lao Ma a hard time?
Definitely not.
On the contrary, WeChat is eager for Pinduoduo to completely destroy Taobao, the foundation of Lao Ma.
With their traffic, they can completely recreate Pinduoduo.
Lao Ma knows full well that he is not afraid that Pinduoduo will become a small Taobao.
He is afraid that Pinduoduo does not just want to do Pinduoduo.
It’s a bit confusing, but Tmall was founded on Taobao.
If Pinduoduo surpasses Taobao, will it be difficult to become a Tmall?
For example, Xiaomi started with cost-effectiveness, and its initial slogan was to build easy-to-use low-end phones.
Later, it also began to gradually encroach on the high-end mobile phone market, and even created the entire Xiaomi ecosystem.
Therefore, it is difficult for Pinduoduo to create a "Tmall", but it is not necessarily too great.
There are examples of Taobao online, and the outside world will definitely be more optimistic about Pinduoduo's model.
Lao Ma's countermeasures were very quick and he immediately established a new department.
Re-gathered the people from Juhuasuan and changed it to Taobao special offer.
With a name like this, any fool would know who they are looking for.
Even though Zhuang Manting had made sufficient preparations before, she was somewhat lacking in confidence to lead Pinduoduo against the aircraft carrier Gang Ali.
Had Tengxun not been locked in as a shareholder in advance, the morale of Pinduoduo’s internal employees would have been even lower.
Chen Dongcheng patted Zhuang Manting on the shoulder: "Still according to the original plan, Pinduoduo will continue to subsidize this year and go public in the United States in June next year."
It is now difficult to get money in the primary market, and investment institutions are becoming more cautious.
Pinduoduo’s model of burning money to bet on the future is destined to only a few powerful venture capital institutions dare to take the gamble.
Whether it takes three years to go public or five years, in the end you cannot avoid going public.
There are natural benefits to going public, as it can raise funds in the capital market and alleviate Pinduoduo’s need for funds.
Zhuang Manting nodded slightly: "I will try my best to run Pinduoduo well and not distract you."
Pinduoduo is now considered a dark horse in the e-commerce world.
Even though there are many problems, it does not prevent the outside world from being optimistic.
If Tengxun hadn’t requested too many shares, both Sequoia and Gao Zhen would have planned to invest in Pinduoduo’s Series A round.
Only such top venture capital institutions have the confidence and foresight to take a gamble.
After looking at the time, Chen Dongcheng said to Zhuang Manting: "I made an appointment with Yin Yanwu from Yinhai Jinhui. Are you interested in meeting me?"
"No, just pick me up after get off work."
Zhuang Manting smiled and shook her head. As soon as she heard the name, she knew they were from the securities group.
It's not of much use to her right now.
Chen Dongcheng smiled and nodded: "Okay, you go ahead."
Cao's stock headquarters is on the 24th floor. As a parent company, the floor where the headquarters is located is naturally the top floor.
In the chairman's office.
Yin Yanwu was sitting and looking at the layout of the office.
When he heard the door open, Yin Yanwu straightened the folds of his suit and stood up with a smile.
"Mr. Chen, I have heard your name for a long time, but I am lucky enough to meet you today. Only Yanwu knows what it means to be young and promising."
"Thank you, Mr. Yin, please sit down first."
Chen Dongcheng smiled, shook hands with Yin Yanwu, and nodded to Xie Jingyu.
Xie Jingyu found some treasured tea leaves and brewed them skillfully.
Yin Yanwu narrowed his eyes slightly and glanced at Xie Jingyu.
From this technique, we can tell that this secretary has practiced making tea a lot. Looking at Xie Jingyu's behavior: "Are you from a state-owned enterprise?"
Although he was asking, Yin Yanwu was very sure.
Xie Jingyu pushed a cup of tea in front of Yin Yanwu and said with a smile: "Yes, Mr. Chen happened to be recruiting, so I came to apply."
Yin Yanwu nodded lightly, took a sip of tea, and said to Chen Dongcheng with a smile: "The tea is good, but the craftsmanship is even better."
"Mr. Yin has good taste, but it's a pity that there is only one Jingyu. Please forgive me for not giving up my love."
Chen Dongcheng smiled and shook his head.
"Haha, how dare I ask Mr. Chen to give up my love? Please don't break my heart."
Yin Yanwu smiled and said: "Mr. Chen, I heard that Cao Cao Financial under your name plans to entrust us with the issuance of ABS products. We are very honored to have Mr. Chen's trust."
“I have an elder who highly recommends you Yinhai Securities.
As a wholly-owned subsidiary of Yinhai Securities, your Yinhai Jinhui focuses on the ABS business.
I want to know more about the market conditions."
Chen Dongcheng was not in a hurry to promise. He leaned back on the sofa and made a listening gesture.
Yin Yanwu smiled and nodded: "This is what it should be. Then I will tell you a little bit."
“It’s a cliché to say ABS Securities.
To explain it in a way related to Mr. Chen's business, it is nothing more than that after consumers buy their hands, Cao Cao pays the debts obtained by borrowing money from consumers, packages them into product projects, and issues them publicly on the exchange."
"The ABS market has developed very rapidly in recent years. A total of 489 asset securitization products were issued throughout 2016, with a total issuance scale of 840.175 billion yuan."
“Last year, the ABS products issued by Ali and JD.com alone amounted to RMB 63 billion.
It is expected that this year will increase even more sharply, based on the number of users who pay with Cao Cao.
We predict that the scale of ABS product issuance will not be less than 10 billion."
Yin Yanwu's eyes couldn't help but look a little fiery.
You must know that Yinhai Securities has always been in the abs securities industry, and its development has been unsatisfactory.
As the person in charge of ABS products under the parent company, Yin Yanwu certainly hopes to reverse the weak situation of Yinhai Securities.
Cao Cao Pay took the initiative to contact them, making Yin Yanwu realize that this was a good opportunity to change Yinhai Jinhui's always weak position.
Just seeing how moisturizing Ali’s thighs are when hugged by Debon Securities, you know how important hugging is to your thighs.
Yin Yanwu smiled and threw out his trump card.
"In order to impact the ranking, we decided to charge Caocao Financial the lowest commission in the industry."
"We are responsible for all contracting, undertaking, and underwriting, so you will be very worry-free."
"The lowest in the industry? How low can it be?" Chen Dongcheng asked with interest.
"What do you think of the underwriting fee of one ten thousandth?"
Yin Yanwu is very confident that at this price, they are equivalent to making a profit at a loss.
Yin Yanwu plans to impact this year's ABS product underwriting rankings.
Cao Cao paid the bill, and he was determined to get it.
Chen Dongcheng's eyes lit up. He had heard Guo Rongjun mention it before.
In order to attract clients, many large brokerages only charge commissions of RMB 3 to 50 million for projects worth billions.
At that time, he thought it was a lie, but he didn't expect that Yinhai Jinhui's quote could be so low.
"Commission cost is not the only thing. I need to consider your product design, process control and other capabilities before making a decision."
Chen Dongcheng smiled: "After all, other companies can't offer your offer."
"I understand, but I dare say that among brokers of our level, we are the only one that dares to quote the lowest price."
Yin Yanwu was confident and said with a warm smile: "Although our performance in the past few years has been somewhat poor, we still have sufficient talent reserves.
You also know how much it costs every year to raise such a group of elites.
What we value is not the commission, but using the abs products paid by Cao Cao to advance into the top ten."
After chatting for a while, Yin Yanwu answered Chen Dongcheng's questions.
Satisfied, Chen Dongcheng stood up and stretched out his hand: "Congratulations, Mr. Yin, and I look forward to a smooth cooperation between Caocao Financial and Yinhai Jinhui."
"Thank you, Mr. Chen. I will do my best not to disappoint you."