JD.com Inc. Files For IPO, Raising 1.5 Billion Dollars

0

JD.com Inc. Files For IPO, Raising 1.5 Billion Dollars

JD.com(360buy) is an online retail startup based in China. JD.com is part of the ecommerce giant group in China along with Alibaba, Dangdang, Amazon China, and many more. JD.com reported that they will be filing for IPO in the United States stock exchange and the startup is currently looking to raise up to 1.5 billion dollars.

JD.com startup ipo

JD.com(360BUY)

JD.com started in 2004 and was one of the early online retailers in China. In 2010, the startup optimized their strategy and started bringing in 3rd party retailers as well. Their pricing system is similar to ebay and amazon where you have to pay a listing fee. JD.com pumps out amazing numbers, The GMV(gross merchandise volume) is RMB86.4 billion (US$14.1 billion) in the first nine months of 2013.

jd.com startup

JD is most popular in China for it’s speedy and organized delivery. JD has a very similar system to Amazon, where they have warehouses in over 34 cities,  1,453 delivery stations and 209 pickup stations in 460 cities, with 18,005 delivery men, 8,283 warehouse staff and 4,842 customer service personnel as of December 31, 2013, according to the company. Consumers in China tend to take JD.com more seriously compared to it’s competitors. For example, people might say that taobao (China’s ebay) has too many junk and that Tmall is too expensive. With a different monetization model and an upcoming ipo, we could be seeing JD.com dominate the ecommerce scene in China.

“The institutions are hungry to participate in the Chinese consumer e-commerce market,” Francis Gaskins, president of Marina Del Rey, California-based IPOdesktop.com, which monitors initial public offerings, said by phone yesterday. “They are trying to beat Alibaba in the IPO market. They want to get there first. The question for the institutions is whether the accounting issue would be a problem for them.”

 

Share.

About Author

Entrepreneur. Huge Startup Junkie. Loves Marketing & Business. @artofwarbiz

Entrepreneur Sky @Copyright 2014