"Brother Ren, please take a seat." In Pinduoduo's office, Zhang Yida made a "please" gesture to Ren Yu.
Penguin acted quickly and sent Ren Yu, general manager of Penguin Industrial Investment Fund, to the capital the day after Zhang Yida issued the financing request.
Zhang Yida gave Ren Yu a big thumbs up in his heart. He is worthy of being one of the top professional managers in the Penguin system. His efficiency is very high.
Sun Yutong also came up to Ren Yu, shook hands, and said with a smile: "Mr. Ren, long time no see."
Ren Yu naturally recognized the former Ali general. He had long heard that Zhang Yida had invited this man to serve as Pinduoduo, so he was not too surprised and responded with a smile: "Yes, the last time we met
It was a few years ago that we met Mr. Sun."
After the two exchanged pleasantries, Zhang Yida invited them to sit down on the sofa in the office and asked his secretary to bring him a few cups of tea.
"Yida, let's talk about Pinduoduo's valuation." Ren Yu took a sip of tea, put the tea cup on the table, and started talking about business.
“GMV in a single month exceeds 3 billion yuan, and it is expected that the total GMV in the next year will not be less than 36 billion yuan. According to the e-commerce valuation method, GMV multiplied by 0.6 is 21.6 billion yuan.
The current exchange rate is 6.55, and the pre-money valuation should be US$3.3 billion."
Ren Yu couldn't laugh or cry after hearing this, and said with a wry smile: "Yida, you are too much. Is the valuation so high?"
Zhang Yida shrugged and said: "I think it's very reasonable. Considering Pinduoduo's rapid growth, it is possible for Pinduoduo to reach 60 billion yuan in GMV in the next year."
"But since Pinduoduo was launched, the total GMV in the 10 months has only been a little over 13 billion." Ren Yu looked at Pinduoduo's operating report placed on the desk, raised his head and said calmly.
I asked about Zhang Yida.
"You have also seen the growth rate of Pinduoduo's business. The monthly compound growth rate exceeds 40%. Based on this growth caliber, the GMV after one year may even reach hundreds of billions." Zhang Yida pointed at Ren Yu
With the operational report in hand, he was filled with confidence while talking and laughing.
Ren Yu smiled and said nothing. The young man really dared to say that from 0 to 100 billion GMV, it took Ahri 5 years and Goudong 10 years.
Do you dare to brag about Haikou, Pinduoduo, breaking 100 billion GMV in two years? You are really fearless if you don’t know!
However, he also understood Zhang Yida quite well. He became famous at a young age and succeeded every time he started his business. It was normal for him to be a little frivolous.
“The 40% average monthly compound growth rate cannot be maintained as Pinduoduo’s size base increases.
It would be good if you can maintain a compound monthly growth rate of 20%."
Ren Yu put down Pinduo's operating report and expressed his opinions.
"Even if it's only 20%, 12 months later, Pinduoduo's monthly GMV has exceeded 20 billion yuan."
The only thing Pinduoduo can do right now is its "high-speed growth". Others, such as: the difference between revenue and profit is a mess.
Therefore, Zhang Yida has always avoided talking about revenue and profits, and only repeatedly emphasized GMV and high growth.
But venture capital doesn’t care about this. If there is GMV, there will be orders, there will be user volume and market share.
Ahli and Goudong have already paved the way for Pinduoduo, and there is no need to explain too much to the market.
Zhang Yida also believes that Penguin has taken a fancy to this point and is ready to invest in Pinduoduo.
After Ren Yu read Pinduoduo's operating report, he was actually very surprised. However, he concealed his emotions very well and did not reveal any traces.
This time I found a treasure. Ren Yu thought, in 10 months, the website’s GMV was 13 billion yuan!
Although this number includes canceled orders, unpaid orders, returned orders, rejected orders...
After deducting these "water orders", 70% to 80% of the actual transaction volume should still be there.
This is incredible and can be considered a dark horse in e-commerce.
As for Pinduoduo's loss figure of nearly 300 million yuan, he selectively ignored it.
With a transaction volume of tens of billions, the loss was less than 300 million yuan. It’s a great savings, isn’t it?
"Okay, I'll just give you 3.3 billion US dollars." Having said this, Ren Yu paused and pretended to be embarrassed and said: "However, Yida, you have to sign a supplementary agreement for me to ensure that you will
Annual GMV of 36 billion.”
"That's not necessary! We have now reached a monthly GMV of 3 billion. Even if we stay still in the next year, we can still achieve the goal of 36 billion."
Sun Yutong knew that Ren Yu was starting to play "tricks" and was worried that Zhang Yida was young and energetic, so he agreed.
Although he also believes that it is not difficult to achieve a GMV of 36 billion, there are no absolutes in anything and there is no need to take this risk.
Ren Yu also had the same idea. Everything is possible. What if Pinduoduo's performance plummets in the next year?
If Pinduoduo was killed, he would not dare to take the responsibility.
Although Pony entrusted him with full authority to take charge of Pinduoduo's financing matters, it gave him great authority.
But he also had to leave a way out for himself, and it was best to have Zhang Yida sign a "backstop agreement."
Ren Yuzhen glanced at Sun Yutong and knew that this was an old Jianghu and was not easy to fool, so he explained: "After all, it is a big deal worth hundreds of millions, so it is better to be cautious."
“It’s better to do this. One year later, Pinduoduo will revalue based on the actual GMV achieved in the next year.
If it reaches 20 billion, it will be valued at 12 billion; if it reaches 40 billion, it will be valued at 24 billion."
Zhang Yida's plan was very popular with Sun Yutong, who agreed: "This is a good method, fair and just, and no one will suffer."
Ren Yu cursed in his heart. According to this method, Penguin is likely to miss Pinduoduo's growth dividend in the past year.
He shook his head and said, "This won't work. This is too straightforward. It will be too much of a disadvantage for investors."
"Mr. Ren, what you said is wrong. According to what you want, we will have to work hard and suffer a loss.
In fact, I think Yida’s method is very good and fair to everyone.”
Sun Yutong also understood what Zhang Yida meant, that he was digging a hole for the penguin, so he also worked hard to help.
This is what Ren Yu actually thinks. He could sign a supplementary agreement with a GMV of less than 36 billion, Pinduoduo revalue, and Zhang Yida transfer the equity as compensation, or return part of the investment money;
As for the GMV above 36 billion, it is an investment dividend.
The plan proposed by Zhang Yida is considered to have wiped out Penguin's investment dividends, which is absolutely unacceptable.
Ren Yu decided to put aside this topic for the time being and began to ask Zhang Yida: "You said Pinduoduo wants to enter the WeChat Zodiac?"
"Yes, that's what it means." Zhang Yida joked again, "But this must be at a reasonable price. It's too expensive and we can't afford this VIP service."
There is no doubt that Pinduoduo relies heavily on WeChat. Zhang Yida said that he cannot afford to enjoy the WeChat Zodiac, but in fact he is probably too greedy.
How could he miss such a good opportunity to rip off someone?
"Yida, in order to open up the zodiac grid, Pony convinced Zhang Dalong by telling the truth.
As the number of WeChat users continues to increase, the commercial value of WeChat continues to rise.
Ruixiang and Huimin Bicycle cooperated early and got a big advantage.
Now our external quotations are US$200 million a year.”
Zhang Yida was dumbfounded and asked blankly: "No way! You are just raising the price on the ground!"
"What do you mean by raising prices on the ground? This sounds so ugly! We call this the reshaping of the intrinsic value of the enterprise."
Zhang Yida knew that he was passive now, so he pretended to be calm and said: "Then Pinduoduo can't afford this kind of luxurious service. Let's talk about cash investment!"
Ren Yu glanced at Zhang Yida suspiciously, and then gave up so easily? I'm afraid he was retreating in order to advance!
Okay, if you don't want to play tricks with me, then I'll play with you.
"Yida, let me tell you clearly! If we don't sign a supplementary agreement, I'm afraid it will be difficult for us to continue talking."
After Ren Yu said such cruel words, he added: "The store where we are looking for good goods has also contacted us.
However, we ignored them. They are a bit small, and Pinduoduo is still our preferred investment target.
Besides, Penguin has always been happy to work with you. Therefore, Penguin is more willing to support Pinduoduo."
Zhang Yida was finally convinced, and he used all kinds of tricks including conspiracy, conspiracy, and threats.
There is no way, Pinduoduo is a social e-commerce company, it lacks traffic and can only rely on others.
In particular, Penguin said it would support Pinduoduo, which really captured Pinduoduo's destiny.
Looking at the silent Zhang Yida, Ren Yu also knew that the heat was almost over, and said with a smile: "After reaching the cooperation intention, Penguin will give you a big gift and completely block the fight for good products."
This was a stick and a sweet date. Needless to say, it really worked. After hearing this, Zhang Yida began to seriously think about the pros and cons.
Blocking Pinduoduo will undoubtedly eliminate a major enemy. In terms of market and market value, Pinduoduo hopes to reach or even surpass the heights of Pinduoduo in its previous life.
As Pinhaoduo keeps chasing behind, Pinduoduo's cake will undoubtedly be cut off.
Isn't it a more trouble-free and efficient way to give this piece of cake to the penguin?
Zhang Yida thought about it for a long time before saying: "A clause must be added to the supplementary agreement. The GMV exceeds 50 billion yuan, and the valuation must be readjusted."
"RMB 54 billion, just enough for a 50% increase. If we exceed this target, we will provide certain equity incentives to the management.
Forget about restructuring valuations, Penguin is an investment, not a charity."
Zhang Yida was not angry after hearing this. The initiative is now in the hands of others. He added: "The price of WeChat Zodiac must be cheaper, let's go with the 50 million US dollars a year that Huimin had at that time!"
"5 years, 300 million US dollars!"
US$200 million a year is an exorbitant price to pay back. Since Zhang Yida made certain concessions in the supplementary agreement, he will no longer rip off the money.
Zhang Yida nodded and agreed. Compared with the cooperation price of Huimin Bicycle half a year ago, the price has increased by US$10 million, which is not unacceptable.
Soon, Pinduoduo signed a Series B financing intention agreement with Penguin.
Penguin priced the WeChat Zodiac traffic portal at US$300 million and contributed US$600 million in cash, for a total investment of US$900 million, acquiring 21.43% of Pinduoduo’s shares.
In addition, a supplementary agreement was signed, requiring Pinduoduo to reach a GMV of 36 billion yuan from February 5, 2016 to February 4, 2017.
If it is not achieved, Pinduoduo needs to recalculate the valuation based on the actual GMV achieved;
Reaching 36 billion would exactly match the pre-money valuation of US$3.3 billion;
With more than 54 billion GMV, Penguin transferred shares worth nearly US$60 million, or 1.43%, to Pinduoduo management for free as equity incentives.
Zhang Yida and Ren Yu conspired again on how to deal with Pinhaohuo. The latter nodded repeatedly and gave Zhang Yida a thumbs up, so cruel!
Penguin has become an investor in Pinduoduo. From the perspective of maximizing profits, it must also curb the development of Pinhaoduo.
Ren Yu did these things without any pressure. He who had been in charge of Penguin Games had a much more ruthless opponent than this.
Since the Chinese New Year is coming soon, Pinduoduo’s due diligence work will be postponed. It is expected that various procedures such as due diligence will be completed after the year, and the delivery of investment funds will also be postponed.
These details are all handed over to the lower-level departments of the two parties to be responsible for docking. Zhang Yida and Ren Yu are only responsible for negotiating the general framework agreement.
After sending Ren Yu away, Zhang Yida looked at Sun Yutong who was hesitant to speak, and asked with a smile: "What's the matter?"
"It's nothing!" Sun Yutong waved his hands and sighed: "I just feel like I agreed too readily. In fact, I think I can endure it a little longer."
"Penguins can take risks and wait. We can't afford to wait! What I'm most afraid of is that they invest in good products."
Zhang Yida’s worries are not unreasonable. Social e-commerce is naturally limited by social software and can only compromise with Penguin.
Sun Yutong thought about it and realized that this was indeed the truth. There was nothing wrong with losing part of the profits. The key was to completely tie the penguin into Duoduo's chariot.
It's hard to say who took advantage of whom. Perhaps it's more appropriate to call each one getting what he needs.