"Rules are made by people! It's not that we can't make exceptions. I just need Mr. Bitnet to come up with something that I can convince the board of directors."
Zhang Yida's smile at this moment seemed very treacherous and annoying to Bitnet.
But thinking of the company's current predicament, he fell silent again, and after a long time he said in a hoarse voice: "Mr. Zhang, tell me, how can we get Ruixiang to agree to invest?"
Looking at Bitnet with a helpless look on his face, Zhang Yida was filled with emotion. Rui Shang was rushing to invest last year, but you didn't have this attitude.
This year Laizanda encountered financial difficulties, and suddenly became more honest.
The venture capital coercion of the founding team has never happened to Zhang Yida, so naturally he cannot feel the pain.
Now Zhang Yida is playing the role of the employer. From the perspective of maximizing the company's interests, he will certainly not show mercy.
Rubbing his temples, Zhang Yida remained silent. Next to him, Bitnet was worried by Zhang Yida's ambiguity. He licked his dry lips and spoke again:
"Mr. Zhang, Ruixiang is also an important shareholder holding 7.1% of Lazada's shares, and I'm afraid he doesn't want the US$100 million invested to go down the drain.
Since Lazada has been in operation, it has opened up in many countries. I believe that as long as we persist for another 1-2 years, the market will definitely turn around.
In addition, everyone in our company will definitely remember your kindness and will definitely create generous returns for you in the future."
Zhang Yida pretended to be confused and said: "But 300 million euros is a big sum! Lazada's current loss situation makes it difficult for me to make this decision."
"Instead of 300 million euros, 300 million US dollars is also acceptable." Bitnet quickly replied.
"In addition, this valuation is too high. With Lazada's serious losses, I very much doubt that our investment of US$300 million may not be enough to cover your losses this year.
Lazada's profit is still far away. Under such circumstances, it is impossible for us to accept your offer of 1.5 billion euros before investment."
Bitnet gritted his teeth and said, "How much offer can Ruixiang accept?"
"$1.41 billion!"
As soon as he heard Zhang Yida's quotation, Bitnet was furious. He shouted angrily: "This quotation is only equivalent to the valuation after Ruixiang's investment a few months ago!"
Bitnet shook his head repeatedly: "This is too low. I will not sell my "child" at such a cheap price."
"I still consider the sincerity price you may be subject to the "ratchet clause". I believe you have also contacted other investors. Are they willing to give a higher offer than Ruixiang?
If so, then I take back what I said and apologize to Mr. Bitnet."
Zhang Yida said confidently that he had seen through Bitone's internal problems.
At present, in the entire Southeast Asia venture capital market, there are basically very few institutions that can invest hundreds of millions of dollars.
Except for sovereign wealth funds such as Temasek and Malaysian Treasury Investment, other local investment institutions are basically small-scale investments, investing hundreds of thousands or millions of dollars, mainly focusing on early-stage projects.
Since Lazada received the G+ round of financing from Ruixiang in the last round, including this round, it is the ninth round of financing.
Ordinary investment institutions really can't afford this money.
In the Southeast Asian venture capital market, Wall Street giants and domestic BAT and other institutions mainly play the role of late-stage investment.
In the first few rounds of investment in Lazada, JP Morgan and Temasek joined the company, but Bitnet even asked Zhang Yida to come. Obviously, the early investors had rejected Lazada.
BAT has not yet entered the Southeast Asian market in a big way. In this case, Ruixiang is naturally a rare commodity.
When Bitnet heard Zhang Yida say the "ratchet clause", a trace of panic flashed across his face.
For entrepreneurs, the ratchet clause is still very scary. If the valuation of the next round of financing is lower than the valuation of the previous round, the ratchet clause will be triggered, and the founding team will compensate the investors of the previous round for their shares.
If something like this really happens, Bitnei will not be able to accept it.
After 8 rounds of financing, his shares have been reduced to single digits. If it is further diluted, he may not have the motivation to fight anymore.
Isn't it just to make money after working so hard to start a business? If he turns to working for a venture capital firm, he will definitely give up.
In addition, Zhang Yida is right. Lazada contacted all previous rounds of investors, but no one was willing to give a valuation of 1.5 billion euros.
Zairui’s previous G-round investment institution, Temasek, was even more disgusting and was only willing to give a valuation of 1.2 billion euros.
Bitnet directly rejected the other party. What a joke. After completing Ruixiang's G+ round of financing, Lazada's valuation has reached 1.29 billion euros, which is approximately equivalent to a valuation of 1.41 billion US dollars.
If he agrees to Temasek's conditions, he will inevitably trigger the ratchet clause and provide equity compensation to Ruixiang, the G+ round investor.
He had a bottom line in mind, which was that the ratchet clause could not be triggered under any circumstances.
Zhang Yida's quotation just met his bottom line. It not only raised much-needed development funds, but also the management's equity was not weakened.
Looking at the hesitant Bitnet, Zhang Yida knew that his condition had basically impressed the other party.
As an entrepreneur himself, Zhang Yida naturally knows what worries a founder of a company that has gone through eight rounds of financing.
Corporate control, equity...
Corporate control is easy to say, and there is an AB share model. But if the founder’s equity is too small, even if the company is listed, he will not get much of the pie.
So he offered Bitnet such a price that was hard to refuse.
"Okay, Mr. Zhang, I accept your conditions. But the 300 million euros must be paid in one go." Bitnet said firmly.
"That's no problem at all." Zhang Yida said with a happy face, "I said that Ruixiang will be your most solid backing in Zanda."
"Of course!" Bitnet was no longer as tense as before, and boasted with a smile on his face: "Your generosity will definitely earn you a satisfactory return in the future."
The two then chatted about the details and initially reached an agreement: Ruixiang would invest 300 million euros ($330 million) in Lazada based on a pre-money valuation of 1.29 billion euros ($1.41 billion), making Lazada's post-money valuation
Reaching US$1.74 billion.
After the investment is completed, Ruixiang's shareholding ratio in Lazada will also increase from 7.1% to 24.72%, and Ruixiang will become the company's largest shareholder.
Lazada has gone through 8 rounds of financing, and the total shares of the management, including Bitne, are less than 20%. The other shares are scattered in the hands of 15 large and small investment institutions except Ruixiang.
…
"Lao Cai, where do you think our Ahri's next international expansion goal should be?"
In the office of Ali Group, Jack Ma and CFO Cai Xin chatted about Ali's international strategy.
Cai Xin is undoubtedly the second person under Jack Ma in Ari Group. His shareholding ratio in the management is also second only to Jack Ma, and he is regarded by Jack Ma as his right-hand man.
Cai Xin replied without hesitation: "Southeast Asia!"
"Why?" Jackma asked again.
Cai Xin organized his language and said slowly: "Southeast Asia is close to mainland China, and our country is the most influential in the region."
Jack glanced at him and thought to himself, what about our country? You are a foreigner, okay? You have Canadian nationality.
But Jack Ma would not say such words, and then nodded in agreement: "I think so too. Is it better for us to build our own branch or acquire it?"
Cai Xin pondered for a long time before speaking: "In my spare time, I have observed reports on the Internet industry in Southeast Asia. A number of e-commerce unicorns have emerged locally.
In my opinion, it is best for us to acquire a local e-commerce company as a starting point.
It not only saves time, but also facilitates localization transformation.”
"Haha," Jackma said with a smile, "an e-commerce unicorn, right? It's only a billion dollars. The shallow pond in Southeast Asia can't raise any big dragons."
Cai Xin nodded in agreement, and added: "That's true. The scale is not particularly large, and it has only been developed for a few years. And the market is so big, it is true that the scale will not increase."
"Did you see a suitable target?" Jackma asked again.
Cai Xin said: “Currently, the four fastest-growing and largest e-commerce companies in the Southeast Asian market are Lazada, Shopee, Tokopedia, and pak.
The former two are headquartered in Singapore, and the latter is in Indonesia. E-commerce companies in other countries are either not large-scale or have too low technical content and are developing slowly.
Singapore has a technological advantage, while Indonesia has a population advantage, so the four largest e-commerce companies in Southeast Asia were all born in these two countries."
Jackma nodded in agreement and said, "Then send someone to inspect these four companies to find the most suitable acquisition target."
Cai Xin shook his head and said with a wry smile: "Shopee is owned by Sea Group, and Penguin is Sea's largest shareholder, holding nearly 40% of the company's shares.
Therefore, we can give up on this one directly."
Jack Ma smiled coldly and said: "Penguin's e-commerce ambitions are not dead. Let's forget about Vipshop's efforts to cultivate dog dealers in China. Even Southeast Asia has their layout."
"Yes! Paipai.com didn't take off back then, and Bonima regretted it for the rest of his life! Haha!" Cai Xin said with a smile.
"Then let's talk about the other three companies!" Jackma gestured to Cai Xin to continue.
“Of the other three companies, Lazada is the largest and has entered the markets of six countries: Singapore, Malaysia, Thailand, Vietnam, Indonesia, and the Philippines.
Based on their recent G+ round of financing, the valuation should be over a billion dollars.
Tokopedia is slightly smaller, with a valuation of nearly US$1 billion...
pak is the smallest in size and its valuation should be around US$100 million..."
Cai Xin analyzed the other three e-commerce companies one by one. Jack Ma pinched his chin and said: "Pak is too small and can be eliminated directly.
I am most inclined to come to Zanda. The size is there and it has entered the market in 6 countries. By acquiring them, the business layout in Southeast Asia can be greatly accelerated.
Tokopedia is also available, but it should be prioritized after Lazanda!”
Cai Xin sighed and added: "In fact, Ruixiang has equity participation in the above four companies."
"Rui Xiang?" Jack Ma looked confused and asked, "Zhang Yida?"
Cai Xin nodded and said, "Yes, that's him. He made a lot of investments in Southeast Asia last year."
Jack Ma chuckled and said: "This Yida is not doing its job for a whole day! It seems that the pressure on them from the Leech Financial Service is still too little."
Cai Xin said seriously: "No matter which company you acquire, you have to deal with Ruixiang. The most important thing is, are they willing to sell their shares?"
Jack Ma was naturally aware of the hostility between the two, and felt a little headache. He sighed and said, "Let's get in touch first! They are financial investors, and they mainly want to make money. If it doesn't work, just give them a certain premium!"
"I'm just afraid that their lions will open their mouths!" Cai Xin also felt aggrieved at this time. No matter which e-commerce company he acquired, there was no way around Ruixiang.
"As long as they are willing to talk, everything will be easy to handle. Don't worry about financial gain or loss, the strategic layout is the most important.
Even Penguin has launched e-commerce in Southeast Asia, but we have not."
Cai Xin looked ashamed and said, "It's my fault. I made a mistake."
"It's okay, there's still time to make amends now," Jackma comforted.
Jack looked into the distance and thought to himself, this inattention has made Ruixiang grow to this point, and it has begun to become a roadblock.