Rumor: Meituan-Dianping Seeks Pre-IPO Funding
Iyiou, 2/18/16
Meituan-Dianping, the company formed by the merger of Chinese group buy site Meituan and online ratings and group buy site Dianping, reportedly issued a prospectus for a pre-IPO funding round expected to be in the region of RMB 200 mln, with a minimum investment of RMB 3 mln, according to a business prospectus obtained by Chinese media outlets.
The business prospectus reveals the following information about Meituan-Dianping's finances:
| Year | GMV (USD Bln) | Average Commission Rate | Total Income (USD Bln) | Gross Profit (USD Bln) | EBITDA (USD Bln) |
|---|---|---|---|---|---|
| 2014 | 10.635 | 4.1% | 0.434 | 0.363 | -0.374 |
| 2015e | 29.106 | 3.6% | 1.035 | 0.765 | -1.626 |
| 2016e | 62.726 | 3.3% | 2.075 | 1.354 | -1.485 |
| 2017e | 118.085 | 3.8% | 4.525 | 3.100 | -0.960 |
| 2018e | 200.734 | 4.4% | 8.824 | 6.321 | 0.819 |
| 2019e | 296.220 | 4.9% | 14.492 | 10.937 | 3.372 |
| 2020e | 394.157 | 5.0% | 19.801 | 15.337 | 5.804 |
The long-term average commission rate is expected to be 5% in 2020, which includes a commission rate of 4% for services bought through Meituan-Dianping such as group buy coupons, and an O2O takeout delivery commission rate of around 10%.
The prospectus also reveals that Meituan-Dianping currently has 181 mln long-term active users, of which 144 mln are active on a monthly basis, and that platform features 17 mln businesses, of which 2.8 mln are long-term users. Meituan-Dianping covers 1,200 cities, has 680 mln user reviews and average daily orders of 6.5 mln. Its total turnover between Q1 and Q3 2015 stood at RMB 118 bln.
Editor's Note: Regarding the prospectus, Chinese science and technology site TechWeb contacted several people connected to Meituan and Dianping, all of whom refused to comment on the matter.
Keywords: food O2O Internet IPO funding online ratings O2O Meituan-Dianping group buying online reviews wireless
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