Competing for the first share of fresh ready-to-distribute retail

Not surprisingly, the first share of fresh ready-to-distribute retail will be born in 2021.

Competing for the first share of fresh ready-to-distribute retail

Although the development stages of various fresh food pre-warehouse companies are not the same, they have coincidentally announced plans to go public in early 2021.

For the fresh produce ready-to-distribute retail platform, 2021 is undoubtedly the best time to market. In 2020, the epidemic has brought a long-tailed impact on consumption habits, giving online vegetable platforms the opportunity to leverage the original and complete offline grocery shopping channels. The number of active users, number of orders, and unit price per customer for most of Fresh Home’s platforms have increased significantly in 2020. These data increases will naturally increase the valuation and pricing of Internet vegetable selling platforms that are about to be listed in their phased goals. good chance.

Who will become the first stock of fresh produce ready-to-distribute retail is an important reference coordinate for the subsequent listing of the pre-warehouse and the valuation and pricing of fresh produce e-commerce. The first share’s right to speak on pricing and its growth performance in the secondary market will affect the trading market’s judgment on the entire track.

Difficult to price the first share

Every “first share” listing will encounter pricing problems, especially on the fresh ready-to-distribute platform.

For pre-warehouse companies, the biggest difficulty that is currently handed over to the secondary market to implement pricing is that there are currently no real-time fresh food retail companies entering the secondary market in the world, and there is no accurate value standard for this business.

The entire fresh food track has a market of 3 trillion yuan, but how much share can the mature model stage of fresh food instant retail have? What is the share of a single company? How far is the current performance level from the growth multiple of a single company in the mature stage? It will all be related to the calculation of the percentage increase in the premium. As a unique online and offline integrated retail model originated in China, investors cannot find a good reference object.

For companies that want to go public, the meaning of fighting for the first share is that they have the initiative in terms of bargaining power. The first listed company will directly affect the valuation of subsequent listed companies of the same type. When everyone wants to hit a beautiful valuation, no one wants to lower their own and the entire track’s evaluation because the former’s pricing affects market judgment. This may also be the reason for the continuous rumors of listing.

What seems paradoxical at present is that the rumored company can’t easily get ahead. As a new track that has no model reference and no standard business model, there are indeed some technical challenges in getting a higher valuation. After all, the iteration frequency of the fresh food track is fast, and the return period is relatively longer.

But going public is imperative. Funds for the entire primary market began to tilt towards the smart technology, medicine, and online education tracks. Retail financing dividends based on online and offline integration innovation may have entered the second half. For the fresh food platform with heavy investment, entering the secondary market as soon as possible will get more financial support.

According to the disclosed information, Dingdong Maicai will be listed on the US stock market (of course, all variables exist before the prospectus is submitted). U.S. stocks currently concentrate most of the concept stocks of Chinese e-commerce and similar e-commerce companies, and U.S. stock investors are more open to the growth of consumer Internet innovation models, which is expected to be beneficial to the valuation and pricing of Dingdong Maicai to a certain extent. At the same time, Dada, an instant distribution company in the same city, will also land on Nasdaq in 2020. The market value of Dada at the time of listing was 3.5 billion U.S. dollars, and then it rose to a maximum of 6 billion U.S. dollars. Dada’s performance is better than other U.S.-listed instant distribution platforms , More or less has the effect of pulling up the valuation.

Must be listed

The two players competing for the first share, Dingdong Maicai and Daily Youxian, still have very different business models and development positioning, and their listing goals are also different.

The first is Dingdong shopping, which should be more urgent for the achievement of the listing result. The advancement of the listing action is also more specific, and the listing location and fundraising quota have been determined.

Dingdong Maicai obviously made the move to prepare for listing in 2020, that is, to achieve overall scale expansion through rapid expansion of the city. In 2020, Dingdong has entered Beijing, Nanjing, Guangzhou, Hebei, Anhui, Sichuan and other important cities and provinces. In just one month in November, nearly 10 new cities were opened. Without fully verifying the overall profitability of the regional market, Dingdong Buying Times adopted the rapid increase in the number of orders, core fixed assets, and the number of cities covered, etc., to price the valuation, which is easy to achieve obvious reference conditions. It can be seen that it is extremely urgent for listing.

Corresponding to these layouts, Dingdong Maicai was an entrepreneurial enterprise that had not confirmed financing for a year and a half. According to the industrial and commercial registration information, the last round of financing for Dingdong Maicai was the B+ round in July 2019, and the amount was not disclosed. Although there is no financing, the investment level of Dingdong Maicai in 2020 is particularly fierce. It can be speculated that at the beginning of the rapid expansion, Dingdong Maicai set the goal of listing in 2021.

The reason why Dingdong Maicai chose to go on sale this year is still very clear.

First of all, the epidemic in early 2020 has ushered in a significant increase in Dingdong’s grocery orders and active users. Its annual MAU growth rate was 89%, almost doubled. With the operating data at this time, it should be helpful for higher valuations.

Secondly, Ding Dong, who has been slow in profitability, should have encountered some difficulties in financing in the primary market. In contrast, in July 2020, Daily Youxian still received 459 million yuan in F round of financing, and at the end of the year, it received investment from the Qingdao government, successfully constructing Daily Youxian’s efforts to upgrade the current local government’s local characteristics. The macroeconomic trend of high-quality agricultural products. The intuitive risk financing figures show that the current actual funding pressures of the two companies are quite different. In order to maintain capital reserves, the urgency of listing Dingdong must be higher.

Daily Youxian is still a little different from Dingdong Shopping. Daily Youxian is now more and more prominent in the stage of warehouse operation quality and back-end supply chain construction.

The first-mover advantages in various aspects such as position expansion and financing time have made Daily Youxian have basically passed the burning period of subsidizing users with large coupons and entered a period of stable development. In 2020, it will cooperate with the Qingdao government to establish a city-level industrial development base and a fresh food supply chain center covering the whole country.

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