Chinese e-commerce platform Dmall is expected to submit an application this quarter for a public listing on the Hong Kong Stock Exchange (HKEx), local media outlet Photon Planet reported Tuesday, citing individuals familiar with the matter.
An investment insider said that as early as the end of 2020, Dmall was ready to go public in the United States, hiring a number of banks and China Renaissance as sponsors. However, by the summer of 2021, the market value of Dingdong Maicai and Miss Fresh, which had been listed in the U.S., shrunk dramatically. Other factors such as stricter domestic supervision led to the company’s decision to give up the IPO application.
An investor of Dmall confirmed the above statement, saying that the company is indeed now preparing for an IPO in Hong Kong, but the final result is still full of uncertainty.
Dmall was founded in 2015 by Liu Jiangfeng, winning angel investment of $100 million from IDG Capital and other institutions. Since then, it has established strategic cooperative relations with Tencent and Shenzhen Investment Holdings.
Dmall has two business models: One is to help retailers and brands realize digital transformation, while the other is to provide value-added services for sales channels with its mini-programs and apps.
As of June last year, Dmall had reached cooperation with more than 120 chains and convenience stores, covering 15,000 stores in four countries and regions. In addition, Dmall has more than 2,300 employees, including more than 1,300 in its R&D department.
Dmall’s founding team is made of several senior executives of technology and e-commerce giants. CEO Liu Jiangfeng and partner Li Wenzhi are former Huawei executives. COO Lin Jie is a former executive of JD.com. CTO Han Xin is a former Vipshop executive. Partner Zhang Feng is the core figure of Wumart’s e-commerce division. However, within a few years, almost all executives in the original founding team left the company.
In March 2016, Liu Jiangfeng decided to pay less attention to team management, then officially left the company. COO Lin Jie replaced Liu and invested more in logistics and distribution.
Lin Jie also left Dmall to start a business after only one year. In the second half of 2017, Zhang Feng, the president of Dmall, served as CEO.
The investor source mentioned above said that Liu Jiangfeng still holds Dmall’s equity. If the listing goes smoothly, Liu will cash out his shares.