Pinduoduo Is Now the Fourth Largest Internet Company in China
On October 25, the stock price of Pinduoduo, a new Chinese e-commerce star, soared by 12.62% to $39.38, reaching an all-time high. The market cap of the company reached $46.471 billion, surpassing JD.com at $44.646 billion as China’s fourth largest Internet company, behind only Alibaba at $449 billion, Tencent with $385 billion and Meituan – $65.572 billion.
Company financial reports show that the number of active buyers in the second quarter of 2019 has increased for all three major e-commerce platforms. Pinduoduo added 39.9 million buyers, Alibaba – 20 million and JD.com – 10.8 million. Pinduoduo has been noticeably outrunning its competitors in this metric.
SEE ALSO: Pinduoduo Outstrips Baidu as Fifth Largest Internet Company in China
Earlier, in August 2019, Pinduoduo unseated Baidu as the fifth largest Chinese internet company, making Colin Huang, founder and CEO of the company, the seventh richest person in Mainland China and 46th in the world with an estimated net-worth of $17.4 billion.
Founded in 2015, Pinduoduo is an innovative group-buying e-commerce platform that allows users to get more affordable prices from sellers through bulk purchases. This model has been especially popular in China’s less affluent and hence more price sensitive third and fourth tier cities.