This is an era of wealth creation, a gong sounded batch of billionaires were born.
Last year, the number of billionaires in China surpassed that of the United States to become the world’s largest billionaire country, which is the result of our decades of economic development and the reward given to our entrepreneurs by the times.
In the past two to three years, the registration system has been the backdrop for a large number of outstanding companies to begin landing on the capital markets and quickly lead the industry and expand globally.
On June 10, EST, DIDI filed a prospectus with the SEC. Eight years after its establishment, DIDI is finally still standing at the gate of the capital market, just a foot away from the stage of success.
As China’s largest travel company and head Internet company, DIDI’s IPO is a bit “late”, at least three years late. But for DIDI at this point, it’s an opportune time.
In 2018, the ebb of the sharing economy and the “cold winter” of capital have extinguished the dreams of venture capitalists and companies to create wealth, and the drawbacks of capital-hypothesized bicycle sharing are undoubtedly on display.
The original DIDI dream of being able to “burn” another DIDI was shattered, Mobay was pocketed by Meituan, ofo went to the brink of bankruptcy, and the defeat of bicycle sharing interrupted the path of capital replication.
The game of “burning money” soon became unplayable.
Internationally, Uber didn’t choose the right time to go public in a hurry, but in the face of its losing performance, it needed to return a mouthful of “blood” in the capital market, at the cost of a few months after listing, its market value was cut.
Worse than Uber is the shared office enterprise WeWork, not only the valuation has shrunk significantly, the epidemic, Masayoshi Son directly cast himself from shareholders into the management of the enterprise, it also almost dragged SoftBank into the mud again just a breath.
Uber is still so, DIDI pressure how not big.
So, DIDI’s IPO was delayed again and again.
In 2020, DIDI raised more than $100 billion, and there have been many rumors in the market about investors urging DIDI to go public, but they have been repeatedly debunked.
From a contemporary perspective, I think it was not that DIDI did not want to go on at that time, but the timing was not right. Because of the impact of the epidemic, DIDI’s business was more or less affected, and if it had chosen to go public, its valuation would have been affected.
In an interview with CNBC recently, DIDI President Liu Zaiqing said, “DIDI’s core business (online dating) is already profitable, or somewhat profitable.”
On June 11, DIDI filed its prospectus with the SEC.
At this point, the mysterious veil of DIDI has finally been lifted. According to Bloomberg news, DIDI has been valued at $95 billion in the non-publicly traded market, slightly higher than Uber’s $93 billion.
However, there are also analyses that in 2019, 2020 and the first quarter of 2021, DIDI’s revenue is, respectively, 154.8 billion yuan, 141.7 billion yuan and 42.2 billion yuan; while Uber’s revenue in 2020 is 11.139 billion U.S. dollars (about 71.3 billion yuan), and 2.903 billion U.S. dollars (about 18.6 billion yuan) in the first quarter of 2021. In other words, from a revenue perspective, DIDI is more than twice as big as Uber, so DIDI’s market cap should hit the $200 billion mark (about RMB 127.94 billion) after the IPO.
I think it’s normal for Uber, the world’s largest travel platform company, to suffer from the impact of the epidemic and decline in performance, but the gap between the two should not be too big.
According to the prospectus, its shareholding is divided into 21.5% held by SoftBank Vision Fund; 12.8% held by Uber; 6.8% held by Tencent; 7% held by founder Cheng Wei; 1.7% held by co-founder and president Liu Qing, etc.. As the first major shareholder of SoftBank in the past two years because of investment losses, financial pressure, for the listing of DIDI, its risk of cash, and this is one of the factors affecting the valuation of DIDI.
Overall, DIDI has taken the first step to go public, and as the absolute leader of the industry, it will certainly face less regulation in the future, but benefiting from the rapid development of the industry, DIDI has also passed the barbaric growth period and accumulated 493 million annual active users.
From a development perspective, going public is not the end of the road for an Internet giant like DIDI, but rather the starting point of a phase. In the future, DIDI will not only become a “world-class technology company that leads the transformation of the automotive and transportation industry”, but also solve the problem of profitability, which is the only way for DIDI to gain a permanent foothold in the capital market.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/didi-ready-to-crush-uber-valuation-may-exceed-127-94-billion-yuan/
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