Dingdong, a fresh food distribution platform, is considering IPO in the United States as early as this year


Tencent technology according to foreign media reports, according to people familiar with the matter, China’s fresh food distribution platform dingdong Maicai is considering an initial public offering (IPO) in the United States as early as this year to raise funds and expand in the highly competitive fresh food take out market.
The fresh distribution company, backed by Sequoia Capital China, is in talks with consultants, people familiar with the matter said. The IPO is likely to raise at least $300 million.
The talks are still at an early stage and details, including the size and timetable of the IPO, are still likely to change, people familiar with the matter said. A representative of dingdong didn’t immediately respond to requests for comment.
Dingdong is competing in China’s crowded fresh food distribution sector, with competitors including Tencent backed Daiichi Youxian and platforms operated by Alibaba group and Jingdong. During the epidemic period, home-based anti epidemic consumers revived the once difficult field of groceries. Dingdong now needs funds to conquer China’s online fresh food industry. By 2025, the size of the industry is expected to reach 1.27 trillion yuan (US $197 billion).
According to its website, dingdong shopping app, established in 2017, provides fresh products including vegetables, bean products, fruits and meat. Its supporters include general Atlantic, Bertelsmann Asia Investments, Qiming venture partners and Gaorong capital.
It is reported that last year, dingdong began to expand its business to 27 cities including Beijing, Nanjing and Guangzhou. The company receives more than 850000 orders a day, with a monthly revenue of more than 1.5 billion yuan. (Tencent technology reviser / Lexue)