Dingdong Maicai

Dingdong Maicai is a Chinese express food delivery service founded in 2017, including fresh vegetables, fruits and fish.

History

2021: Access to the New York Exchange

At the end of June 2021, Dingdong Maicai entered the New York Stock Exchange under the ticker DDL. The IPO was not as big as the company originally planned.

As part of the listing, the Chinese product delivery service placed 3.7 million US depositary shares at a price of $23.5 instead of the 14 million previously announced. Instead of $357 million, the company was able to raise $87 million.

Dingdong Maicai intends to spend the earned funds on expanding its presence in existing markets and entering new ones. In addition, part of the funds will be used to improve technological processes and supply channels, as well as to solve common corporate problems and replenish working capital.

Chinese product delivery service Dingdong Maicai entered the New York Exchange

It is noted that the period of the coronavirus pandemic COVID-19 , the revenue of Dingdong Maicai increased significantly, as the Chinese began to order products from home more often, refusing income to stores, but due to high costs, including those associated with compliance with the law, the company remains unprofitable.

By the end of June 2021, Dingdong Maicai has more than 950 darkstores, from where ordered products are delivered. The company plans to expand this network, which could increase losses. The daily volume of orders exceeds 900 thousand.

Dingdong Maicai IPO is the exit from the company's capital for Yuri Milner's DST SoundFund. The latter invested in a startup in May 2021 - then the service attracted a total of $700 million, and DST Global acted as a lead investor in this round. Tiger Global Management, General Atlantic, CMC Capital Group, Capital Today, Sequoia Capital, Ocean Link and Hony Capital funds also participated in the investment.^[1]

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