Zhang Yida smiled brightly. These two investment tycoons were either unaware of the situation at hand, or they were just pretending to be dumbfounded for him.
He is more inclined to the latter, probably because he is young and seeing if he can get some bargains.
Huimin Bicycle has created the era of shared bicycles and is the leader in the industry. Now as long as Zhang Yida lets out the word, Huimin Bicycle will raise funds, and venture capital companies that want to invest can line up outside the Fifth Ring Road.
As a high-quality star entrepreneurial project, Huimin Bicycle is favored by investors. Recently, there have been too many investment letters of intent sent to the company's mailbox.
The reason why he entrusted Shen Beipeng to help him find A+ round investors was because he valued Shen Beipeng's connections and wanted him to introduce well-known venture capital institutions to invest in the company.
Zhang Yida has no intention of taking money from other small and medium-sized institutions.
The valuation of Huimin Bicycle in the next year will soar like a rocket. If it were all invested by a small fund with no reputation, the endorsement would be a bit weak, and it would be easy for people to criticize it, and it would be criticized as a valuation bubble.
Therefore, financing still requires cooperation with large institutions and funds. At the same time, it also means to attract all good resources to Huimin Bicycle and reduce the opportunities for other competing products.
Although it is necessary for big funds like them to join in and endorse, with the development of the country, there are far more big funds than these two. They are not the only choice, so Zhang Yida said very strongly:
"The pre-money valuation is US$500 million. If the price is lower than this, there will be no negotiation."
Zhu Xiaohu and Zhang Ying looked a little ugly. Zhang Yida was so strong that he didn't even allow them to pay back the price.
They turned their attention to Shen Beipeng, who smiled and joked:
"Why are you looking at me? It doesn't work even if you look at me. Huimin Bicycle is now a hot project on the market. GGV, Qiming, Gaoling, Penguin, and Didi many institutions are interested in investing in it.
I already greeted you before coming here and told you to bring enough money.
Looking at Ruixiang, Blackshirt made three consecutive rounds of investment, investing a total of US$240 million. Within one year, the investment value increased to US$1.5 billion, and the floating profit on the book was as high as US$1.26 billion.
Only by giving up can you gain!"
Zhang Yida is very satisfied with Shen Beipeng's attitude. He is indeed a top investor. When he sees a good project, he invests very decisively and is quite courageous.
"Heishi's family has a big business, how can our small family compare to it?"
Zhu Xiaohu's tone was a little sour. Heishui's investment in Ruixiang has really made a lot of money. Why don't I have such good luck?
Ruixiang's current valuation is as high as tens of billions of dollars, which is no longer affordable for early and mid-stage venture capital investors like them.
"Okay! Just follow Mr. Zhang's wishes! US$500 million is US$500 million, but 50 million in financing is too small. At least US$100 million must be opened."
Zhang Ying compromised and agreed to the pre-money valuation requirement of US$500 million, but the financing share requirement was doubled.
This request gave Zhang Yida a bit of a headache. He had already planned the pace and scale of financing, but now Zhang Ying's request has undoubtedly disrupted his plans.
"Do you still want Blackshirt to invest in the A+ round?" Zhang Yida asked Shen Beipeng.
"Follow me, I must follow you!" Shen Beipeng replied happily.
Zhang Yida has even more headaches. Nearly 20% of the shares will be released in the A+ round, and Heishi will also participate in the investment, so his shareholding ratio will further decrease...
Considering that competitor Baimo has already received US$30 million in financing, Huimin Bicycle cannot stop its expansion and even has to accelerate its progress.
If we want to speed up the progress, we won't have enough money.
The US$50 million in Series A financing had an exchange rate difference of approximately RMB 307 million at that time.
It cost RMB 100 million to build 100,000 bicycles, RMB 12 million for the salary of 500 dispatchers, RMB 15 million for the salary of 300 R&D and operations personnel at the headquarters, RMB 30 million for advertising, and purchased more than 160 bicycles for dispatching and transporting light trucks for RMB 24 million...
…
The current single-day riding fee income of the 120,000 bicycles remains at about 400,000 yuan, and the accumulated riding income in three months is 20 million yuan.
There is still about 140 million in cash on hand.
Excluding bicycle depreciation, the monthly loss is more than 25 million yuan, and the total cash on hand is enough for 5 months.
Looking at it now, after receiving US$50 million in Series A financing, Zhang Yida only allocated 1/3 of the funds to build cars, which was too conservative.
Now that we have three months of operational foundation, the financial model has also been produced. Looking back, Huimin Bicycle's optimal plan at that time was to manufacture 150,000-200,000 bicycles.
The next strategy is to enter second-tier cities and provincial capital cities across the country. At the same time, the number of bicycles in the four first-tier cities must be further increased.
Excluding the four first-tier cities, there are 45 second-tier cities and provincial capital cities, and 10,000 vehicles each equals 450,000 vehicles.
Beijing and Magic City will be replenished to 100,000 vehicles, and Pengcheng and Yangcheng will be replenished to 50,000 vehicles. After deducting the existing 120,000 vehicles, 180,000 vehicles need to be replenished.
630,000 vehicles, 630 million yuan, and the cost is almost a little over 100 million US dollars.
The scale of investment has almost been expanded five times on the current basis, and the operating loss has been increased four times, if not five times. The loss in one month is 100 million.
Based on a half-year plan, at least 600 million yuan in operating funds must be reserved.
To implement the 2.0 strategy, US$200 million in funding is needed to support it.
After some consideration, Zhang Yida agreed to Zhang Ying's request to expand the scale of financing.
The next day.
Shen Beipeng called Xu Xiaoming, Zhang Yida called Lei Dongming, together with Zhang Ying and Zhu Xiaohu, witnessed by six parties, signed the A+ round financing agreement:
Based on a pre-money valuation of US$500 million, Sands River Venture Capital and Matrix Partners each led the investment with US$50 million, followed by Blackshirt Capital with US$20 million and Zhenke Capital with US$5 million.
Huimin Bicycle completed a total of US$125 million in Series A+ financing, with a post-money valuation of US$625 million.
After the A+ round of financing, the shares changed to:
Zhang Yida:54.4%
Option pool: 6.4%
Huayi Capital: 3.2%
Blackshirt Capital: 16%
Zhenke Fund: 4%
Jinshahe Venture Capital: 8%
Matrix Global: 8%
Zhang Yida's shareholding ratio has dropped by 20% compared to the Series A financing, but because one share has 20 voting rights, the stock voting rights still remain at a high of 92.3%.
Blackshirt Capital and Zhenke Fund exercised their rights to follow in the investment, and the share ratio remained the same as in the Series A and was not diluted.
Because all the funds raised by Huayi Capital were invested in the Ruixiang Industry Mutual Win Fund, Huayi Capital had no money to invest, so its shareholding ratio was also diluted.
125 million US dollars is equivalent to 778 million yuan, plus the existing funds of 140 million on the account, Huimin Bicycle's cash reserves suddenly reached 918 million.
However, the money came quickly and was spent quickly. Zhang Yida sent 600 million back to the Fujitec foundry and placed a production order for 600,000 shared bicycles at once.
Huimin Bicycle has now signed a strategic cooperation agreement with Fujitec, and the production price is originally at a certain discount.
However, considering that after the bicycles are produced, they still need to be transported to various parts of the country for distribution, and the transportation costs are also quite expensive.
So in the end, the large order was given to Fujitec at a unit price of 1,000 yuan/vehicle, which included OEM production and transportation to the country.
In addition, the operation sub-centers in various places also need to prepare in advance.
In addition to Beijing and Shanghai Pengyang, Huimin Bicycle has established 42 operating sub-centers at one time, distributed in second-tier cities and provincial capital cities.
Specifically:
5 cities in Guangdong: Dongguan, Foshan, Zhuhai, Zhongshan, Huizhou
6 cities in Jiangsu: Nanjing, Suzhou, Wuxi, Changzhou, Nantong, Xuzhou
3 cities in Shandong: Qingdao, Jinan, Yantai
3 cities in Fujian: Xiamen, Fuzhou, Quanzhou
2 cities in Liaoning: Shenyang, Dalian
The other two of the four major municipalities: Tianjin and Yuzhou
As well as the capital cities of 14 other provinces and autonomous regions except Xinjiang Province, Tibet Province, Mongolia Province, Qinghai Province, Gan Province and Ningxia Province:
Because the A+ round of financing is limited, we have temporarily given up coverage of 6 remote or border provinces, and mainly focused on the inland hinterland.
Some places are not particularly suitable for shared bicycles due to climate and terrain.
Huimin redeployed 2/3 of its existing team and spread it across 42 newly established operating sub-centers, leaving less than 10 old employees in one city.
This operation brings considerable operational difficulty to offline operations.
First of all, because most of the old employees were transferred from the four first-tier cities, it took some time for the new employees to get familiar with the work, resulting in a great decline in work efficiency.
The newly established operation sub-center has less than 10 old employees. It is very difficult to manage the 10,000 shared bicycles that will be put into place. Each operation sub-center needs to recruit 40-50 more offline dispatchers.
The ground team suddenly expanded from 500 people to 3,000 people. It was such a big step that the whole company was in a hurry.
The operation and R&D team at the Beijing headquarters has expanded to 400 people, and the 100 new people are basically operating personnel in the financial business line of deposit financing.
According to the financial model, it is estimated:
The monthly salary of the 3,000-person ground team is 24 million, the monthly salary of the 400-person headquarters operation and R&D team is 6 million, the monthly rent for the offices of the local operation sub-centers is 1 million, and the monthly salary for advertising is 20 million...
Daily expenses starting at more than 50 million yuan a month almost made Zhang Yida's eyes pop out.
Looking at revenue, based on the daily income of a bicycle of 3 yuan after stable operation, 720,000 bicycles generate revenue of 64.8 million yuan in one month.
But Zhang Yida knows that since the charging model was changed from 1 yuan/hour to 0.5 yuan/0.5 hours, if he wants to achieve 3 rides per bicycle per day, the daily income of 3 yuan is basically a thing of the past. The income from each bicycle is 1.5 yuan to 2 yuan at most.
Based on the daily income of 1.5 yuan per bicycle, the monthly revenue of 720,000 bicycles is 32.4 million yuan.
Compared with the monthly fixed expenditure of more than 50 million, the money lost goes to grandma’s family.
Not counting the depreciation of the bicycles, the cost of 720,000 bicycles is 720 million. The depreciation is completed in 2 years, and the monthly depreciation is 30 million.
Strictly speaking, after Huimin Bicycle's operation stabilizes, its net loss in January can reach more than 50 million. This is the result after the bicycle operation is on the right track and generates 2 million riding orders every day.
Therefore, Zhang Yida attaches great importance to deposit financial management, the first step in monetizing advertising traffic.
I just don’t know how popular it will be after it goes online?