Report
EUR 85.33
For Business Accounts Only
Dingdong Maicai is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.
Its core product category is fresh groceries and it procures most of its products directly and offers to deliver them to customers within 30mins of having received an order.
DM has grown its GMV by 18x over FY18-20, while its revenue was up 2.9x over FY20. Growth has been driven by an increase in users, more frequent orders by users and an increase in order value. The company has also rapidly expanded its presence from launch in Shanghai in 2017 to over 29 cities by 1Q21.
On the flip side, the company has shown no signs of turning a profit and its margins have shown no improvement over the past few quarters despite its revenue nearly tripling over the period.
Dingdong Maicai Pre-IPO
Dingdong Maicai (DM), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.Dingdong Maicai is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.
Its core product category is fresh groceries and it procures most of its products directly and offers to deliver them to customers within 30mins of having received an order.
DM has grown its GMV by 18x over FY18-20, while its revenue was up 2.9x over FY20. Growth has been driven by an increase in users, more frequent orders by users and an increase in order value. The company has also rapidly expanded its presence from launch in Shanghai in 2017 to over 29 cities by 1Q21.
On the flip side, the company has shown no signs of turning a profit and its margins have shown no improvement over the past few quarters despite its revenue nearly tripling over the period.
Underlyings
Alibaba Group Holding Ltd. Sponsored ADR
Dingdong Maicia
JD.com Inc. Sponsored ADR Class A
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
Other Reports on these Companies
Other Reports from Aequitas Research
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.