"Huimin Travel Group currently owns three major sub-brands: Huimin Bicycle, BTP.bike, and Green Scooter.
The business spans North America, two major Asian states, and three major countries: China, the United States, and New Zealand.
The purpose of this financing: Part of it is to complete the expansion of domestic shared bicycles into third- and fourth-tier cities and continue to consolidate its leading position in the market;
Part of it is to accelerate the occupation of the Southeast Asian market and the market expansion in North America..."
In the conference room of Huimin Travel Group, Zhang Yida began to promote the global strategic layout of Huimin Travel Group to investors.
As time enters August, Green Scooter's North American operations center has also put its shelves up and is vigorously engaged in research and development.
The competition for shared bicycles in China is fierce, and foreign countries have to continue to invest money in research and development.
Seeing that the funds in his account were getting less and less day by day, Zhang Yida upgraded Huimin Bicycle to Huimin Travel Group and launched a B+ round of financing.
"In your opinion, Mr. Zhang, what will Huimin Travel Group be like in three or five years?"
The question was raised by an investment representative from Singapore’s sovereign wealth fund GIC.
“Three to five years from now, Huimin Travel Group will become the world’s largest short-distance transportation group.
In Asia, we mainly operate shared bicycles. In Europe and America, we mainly operate shared electric scooters.
There are at least 200 million users in China and at least 200 million users overseas.
The annual revenue reaches more than 7 billion US dollars, and the annual net profit reaches more than 2.1 billion US dollars..."
Anyway, the question was about three to five years later, when Zhang Yida began to describe a bright future.
"Is there any supporting material or basis for this development goal?"
SoftBank Capital Investment representative asked.
"Yes!" Zhang Yida nodded solemnly, turned on the PPT projector in the conference room, pulled out several data reports, and said:
"Currently, the number of registered domestic users of Huimin Bicycle has exceeded 20 million, and the number of users is growing at a rate of 3 million per month.
Without continuing to sell bicycles, it is expected to reach the goal of 200 million registered users in 60 months.
But in fact, as the number of bicycles on the market increases, the growth of users will definitely accelerate. In less than five years, maybe in two or three years, the goal of 200 million will be reached.
China only accounts for one-fifth of the world's population, and its overseas market is four times that of China.
We can achieve 200 million users in China, and I think we can definitely reach this goal overseas, or even surpass it.
After nearly a year of operational demonstration, we have basically determined the two pillars of revenue for short-distance shared travel - cycling revenue and advertising revenue.
When the domestic business reaches 200 million registered users, I think the daily riding orders will not be less than 40 million.
The average customer price is 1 yuan per order, the daily revenue will reach 40 million yuan, and the annual revenue will reach 14.6 billion yuan, equivalent to nearly 2.4 billion U.S. dollars.
For foreign business orders, we calculate that there are 20 million orders per day, with a single order of 0.5 US dollars, the daily income will be 10 million US dollars, and the annual income will be more than 3.6 billion US dollars.
Adding the two together, the total domestic and foreign cycling business revenue is US$6 billion.
Our domestic advertising business currently generates monthly revenue of nearly 8 million U.S. dollars and annual revenue of nearly 100 million U.S. dollars.
With the simultaneous improvement of domestic and foreign business, it will not be too difficult for advertising revenue to reach more than 1 billion US dollars.
According to our internal calculations, after user subsidies are stopped and business development reaches a stable state, the operating profit margin will reach more than 30%.
With an annual revenue of US$7 billion, the net profit will be more than US$2.1 billion.”
A group of investment representatives talked to each other and exchanged their opinions.
Zhang Yida's "pie" is too big, and most investors do not believe this data.
Fold it in half, fold it in half again, and multiply the data calculated by Zhang Yida by a quarter, which is still achievable with a high probability.
For example: there are 50 million domestic users and 50 million foreign users, with annual revenue of US$1.75 billion and annual profit of US$525 million.
There is also a price-to-earnings ratio of 20-30 times, and a market capitalization of tens of billions.
If Zhang Yida knew what they were thinking, he would definitely sneer at them.
After 28 months of operation in the previous life, fof's single-day orders exceeded 32 million.
As long as Huimin Bicycle can break away from Baimo and completely occupy the vast majority of the market share, there is still hope of stably maintaining 40 million daily orders.
What makes Zhang Yida really unsure is the overseas market. After all, the product has not yet been launched, and there is no reference basis. It is hard to say how it will develop.
No, the investment representative of Silver Lake Capital in the United States said:
"Mr. Zhang, there is no doubt that Huimin Bicycle is the king of China's short-distance travel market.
But on the other side of the ocean, in the United States, the cultural beliefs and business environment are completely different.
The Green scooter has not yet launched a finished product, and whether it will be successful in the United States is still full of unknowns."
"Yes, we at Warburg Pincus also agree with what the Silver Lake Capital investment representative said.
We can only conduct valuation based on Yimin Travel Group’s existing domestic business and will not give any other premium.”
Smith, the representative of Warburg Pincus, spoke firmly and in a non-negotiable tone.
Warburg Pincus is also an American private equity fund company. Zhang Yida speculated that the two foreigners colluded to lower the price together.
“Then what do you think the valuation of Yimin Travel is?”
Although financing is imminent, Zhang Yida still looks calm and composed.
As the co-chairman of a company with a valuation of tens of billions of US dollars and a company with a market value of 6 billion US dollars, he has proven his ability many times in the entrepreneurial circle.
It is absolutely impossible for him to make too big concessions in terms of valuation.
Investing is also investing in people. He knows that he is now a piece of cake.
To put it bluntly, I alone am worth hundreds of millions of dollars.
That’s how confident you are!
"The valuation of Huimin Travel Group's last round of financing was US$1.8 billion! We are willing to give it a pre-money valuation of US$2 billion."
Warburg Pincus Investment Representative Smith just said such a sentence, and saw several cold eyes cast on him, with ridicule and displeasure in their eyes.
Shen Beipeng, Xu Xiaoming and other old shareholders will definitely quit! The last round of financing was US$1.8 billion. Five months later, the valuation has increased by US$200 million?
Who are you fooling?
"Mr. Smith, Huimin Travel Group has always been a fast-growing company.
From angel round to round A, round A+, and round B, the valuation of each financing has increased several times.
US$2 billion is definitely not worthy of Yimin Travel’s current net worth.”
Shen Beipeng spoke. From his perspective, the higher the valuation of Huimin Travel Group, the better!
To safeguard valuation is to safeguard one's own interests.
“However, the competition in the shared bicycle market is becoming more and more fierce, and Yimin Travel Group’s losses are also increasing. This is also an indisputable fact.
As far as I know, your country’s shared bicycle market has developed a free-riding operation strategy!
Millions of bicycles, free to ride.
Haha, is this a commercial project or a public welfare project?"
Smith sneered. He was well prepared for this financing negotiation and collected a large pile of various information, all of which were used to lower the price with Yimin Travel.
"The national conditions are different. Free market changes are a typical Internet strategy in our country.
Didn’t Ahri defeat eaby for free? Can you say it was unsuccessful?
If you want to take it, you must give it first!
This is a famous saying from the Tao Te Ching, an ancient book written in my country more than 2,000 years ago.
What's the meaning?
Let me explain it to some foreign friends.
If you want to seize something, you must first pay a price to make the other party relax their vigilance, and then find an opportunity to seize it.”
Zhang Yida gave tutoring lessons to several foreigners, who were stunned for a moment.
"Mr. Smith, if you sincerely want to invest in people-friendly travel, you should show your sincerity.
Rather than finding fault here.
As the youngest CEO of Nasdaq, Mr. Zhang Yida is quite famous on Wall Street.
His career success comes from his hard work and his forward-looking strategic vision.
In addition to Warburg Pincus, I think other Wall Street capitals should be interested in Yimin Travel."
Xu Xiaoming came out to help, and Smith was so angry that he turned blue and remained silent.
"With a pre-money valuation of US$3 billion, if you are willing to believe me, you can sign the contract now.
If everyone doesn’t have enough confidence in me or Yimin Travel, I think there is no need to talk more!
It’s simply a crime to waste time.”
Zhang Yida said this not only to Smith, but also to several other investors.
Time is precious! If the negotiation fails, change your home as soon as possible.
Several investors looked at each other and were confused.
If you are not interested in traveling to benefit the people, then you will not come here today.
Just one year after its founding, Yimin Travel’s valuation soared to US$3 billion.
They are afraid that the bubble in the middle is too big!
However, there is a case of "Yimin Wangjin was successfully listed after 21 months of operation", and investors feel a little more confident.
"Mr. Zhang, we at SoftBank agree to your offer. But we have two requirements. The first is that we lead this round of financing, and the second is to add a gambling agreement."
The representative of SoftBank Investment did not know whether he had consulted the headquarters leadership, but he was the first to jump out and break the calm atmosphere.
"What gambling agreement?"
Zhang Yida now has more debts than he needs to worry about, and he has signed one gambling agreement after another.
But he is not afraid and has the confidence to accomplish his goal.
"One year to settle China's domestic bike-sharing war."
This sentence from the SoftBank investment representative is very interesting. Basically, everyone here heard the other meaning - to completely consolidate the industry's dominance and digest the valuation bubble.
"Settling the war? What are the specific standards?"
Zhang Yida continued to ask, he must make a clear distinction. If he is allowed to monopolize the domestic market 100%, it would be a fantasy and a fantasy.
"Occupying 80% of the industry's market share. Or allowing Huimin Travel's Chinese business to achieve revenue balance.
Just meet one of the two conditions."
After hearing this condition, Zhang Yida did not rush to reply, but frowned and considered it.