Chapter 384: Valued at 5.8 billion US dollars, Wang Xin’s little thoughts! Soaring option value!
Five days later, Penguin, Ali, Huake and Kuapao signed a letter of intent for investment in Shanghai.
The content involves core business terms such as investment amount, valuation, equity ratio, delivery conditions, and exclusive conditions, which requires Kuaipao not to negotiate financing matters with other investment institutions within three months.
Before completing due diligence and signing a formal agreement, the investors in Kuaipao's Series B financing were only Penguin, Ali and Huake.
The total transaction volume of Kuaipao in 2012 was 31.7 billion, mainly from takeout. According to the industry's average price-to-sales ratio and a 90% market share, with the efforts of Gao Weilin and Pei Yi, they finally got a coefficient of 1.2, that is, 317 times 1.2, and the valuation was set at 5.8 billion US dollars.
Compared with the 1.2 billion valuation in the A round of financing a year ago, the increase was 483.3%.
In other words, if the investment institutions that participated in Kuaipao's Series A round had invested 10 million yuan at that time, the current valuation would have reached 48.33 million yuan, nearly a five-fold increase.
Ali led the investment, followed by Penguin and Huake, with 870 million US dollars in exchange for a 15% equity ratio in Kuaipao.
After the financing is completed, Senlian Capital's shareholding ratio will become 67.9%, Penguin 10.1%, Ali 9.4%, and Huake 4%. Chen Yansen will still firmly hold the controlling rights.
Although Kuapao did not announce it to the public immediately, due to the large scale of financing, its peers soon received the news.
“870 million US dollars? Are Penguin, Ali and Huake crazy? How can Kuaipao be valued at 5.8 billion US dollars?”
Zhang Tao from Dianping was extremely dissatisfied.
"Although Kuaipao's annual sales are only a little over 30 billion, its growth rate is extremely fast. In January, its takeaway and group-buying business output reached 4.3 billion. It is estimated that the total performance in 2013 will reach more than 50 billion yuan."
Co-founder Li Jing, who was sitting nearby, explained.
Zhang Tao sighed dejectedly and waved his hands, saying, "I understand what you said, but I just don't accept it. Dianping has been fighting for two years before it stood out from the battle of thousands of groups. Before it had time to enjoy the joy of victory, it was plucked by Senlian Capital. Is this fair?"
"Brother Tao, the business world is like a battlefield. Where is the fairness?" Li Jing said with a wry smile.
Back then, Dianping also stepped on the heads of its peers and gradually rose to the top three in the industry.
Now that they are being stepped on by Kuaipao, they naturally have no right to shout about fairness.
"How many daily orders does the takeout business have?" Zhang Tao asked casually.
“Yesterday, the number exceeded 30,000 for the first time, but new customer orders accounted for 85.7%, the next-day retention rate of first-order users was only 7.4%, and the second-order rate was only 2.1%.” Li Jing found it difficult to speak.
To put it bluntly, all the users of Dianping's food delivery channel come here for the "15 yuan discount on the first order". Among 100 customers who have taken advantage of the offer, only 7.4 are willing to return to the channel the next day, and only 2.1 of them are repeat customers.
This data is fucking terrible!
The corners of Zhang Tao's mouth twitched, he took a breath of cold air, his eyes went dark, and it took him a while to come back to his senses.
Compared with the conversion and retention data of the previous two days, it seems to have dropped by half again.
The food delivery business had just been launched for a week. Although Dianping had no relevant experience before, it had also poached a group of backbones from Qiandu and Meituan Waimai. It shouldn't be so bad, right? He looked at Li Jing and asked, "What's the problem?"
"The riders' ability to fulfill orders is insufficient, the order allocation algorithm is frequently wrong, and the delivery route planning also has serious bugs."
Li Jing told the truth.
In fact, Qiandu and Meituan Waimai have also done a terrible job in these three aspects of technology.
It would be strange if Dianping did not encounter any problems by directly applying the technical solutions of these two companies.
The entry threshold of the food delivery industry is low, but the technical threshold is high.
In order to improve the accuracy of order distribution, transport scheduling and route planning, Chen Yansen spent nearly 5 billion yuan to acquire AutoNavi Maps and poached hundreds of algorithm engineers from companies such as Microsoft, Google and Ali.
Hundreds of billions of human, material and financial resources were invested!
Zhang Tao thought that he could replicate the successful model of Kuaipao by poaching a dozen programmers from Qiandu and Meituan Waimai? He was just dreaming! "It should be solved as soon as possible. As an extension of the group buying business, the frequency of repeat purchases for food delivery is much higher than that of group buying. Whether Dianping can obtain the next round of financing mainly depends on the performance of the food delivery business."
Zhang Tao looked solemn as he gave instructions to Li Jing.
"Okay, I understand." Li Jing nodded in response.
But in the eyes of users, Dianping’s food delivery system is worse than Meituan and Baidu, and the delay rate of riders is as high as 30%.
Users scold the riders, and the riders scold the company.
For example, the delivery address is clearly Longhua, but the destination planned by the system is Longhua Middle Road. This is a scam!
If the first order wasn’t free, who would bother to order takeout through Dianping?
The detour that Zhang Tao took at this time was also taken by Li Yanhong and Wang Xin a few months ago.
The other side.
After Wang Xin learned that Kuaipao had raised another 870 million US dollars, he felt the pressure doubled.
Faced with a colleague who has neither shortage of money nor traffic, he really feels a little at a loss as to where to start.
When engaging in a price war with Kuaipao, no one has as much funding as others.
In terms of technology, Meituan is far behind its competitors. It has been more than five months since it entered the food delivery industry, but its positioning accuracy and order distribution are still disappointing.
Amap refused to cooperate and refused to provide data interface; Qiandu's map data was biased
One is a real villain, the other is a hypocrite.
Meituan doesn’t even have first-hand map data, so what can it use to deliver food?
In a fit of anger, Wang Xin wanted to get the data himself, but when he inquired, he found out that he not only needed to apply for Class A surveying and mapping qualifications for navigation electronic maps, but also Class A surveying and mapping qualifications for Internet map services to be compliant.
By the time he got the qualifications, Meituan was already out of business!
This is also another important reason why he scaled down his takeaway business.
First, we should retract our fist and hold on to our share of the group buying business.
"Knock, knock, knock!" A series of rapid knocks on the door interrupted Wang Xin's thoughts.
Without waiting for him to react, Wang Huiwen rushed in and said helplessly, "Brother Xin, Juhuasuan wants to terminate the cooperation."
"Ali invested in Kuaipao, but it is also an investor in Meituan?" Wang Xin stood up suddenly and asked angrily.
However, Kuaipao’s valuation is 5.8 billion US dollars, while Meituan’s is only 400 to 500 million US dollars, less than one-tenth of that of Kuaipao. So of course their values are different.
Wang Huiwen complained silently.
In fact, Wang Xin knows in his heart that Meituan has too few chips in its hands, so it is normal for others to look down on it.
But Ma Liyun's actions were too much! Kuaipao is not a subsidiary of Ali, so is it necessary to remove Meituan from Juhuasuan? "What about Dianping and Lashou?" Wang Xin asked.
"The same treatment as us." Wang Huiwen replied expressionlessly.
Hold!
Wang Xin cursed inwardly. He understood that this was most likely a hidden clause between Kuaipao and Ali.
In this round of financing, Kuaipao definitely gave Ali generous benefits, which successfully convinced Ma Liyun.
For a moment, Wang Xin was extremely anxious.
Meituan’s transaction volume in January was 470 million, of which 60 million came from Juhuasuan.
After losing this part of performance output, I am afraid that Meituan will not even be able to achieve a transaction volume of 300 million in February.
After all, February only has 28 days, and there are seven days off in the middle.
Wang Xin took a few deep breaths, and in desperation, he called Lin Chenfeng from Penguin Investment Department again.
"Mr. Wang wants to sell the company again?" Lin Chenfeng joked with a smile.
Last time, he decisively rejected Wang Xin.
Otherwise, you will be fooled by Wang Xin like Ma Liyun.
"No, I want to discuss cooperation with Mr. Ma to merge Meituan and QQ Group Buying." Wang Xin said shockingly.
He knew that conventional cooperation methods were not enough to impress Ma Wenteng, and only by burning his boats could he have a chance of survival.
In his opinion, although Penguin participated in the A and B rounds of financing of Kuaipao, it has always maintained the operation of QQ group buying, which shows that Ma Wenteng still covets the offline consumption scene.
Lin Chenfeng was slightly stunned and almost laughed out loud. The group had long had complaints about QQ Group Buying, PaiPai.com and Yixun.com, and they were too busy getting rid of the burdens, so how could they possibly acquire Meituan?
Even if it is paid in the form of equity, Ma Wenteng and even Penguin may not be interested.
But he changed his mind and thought that perhaps merging Meituan into QQ Group Buying could increase the product valuation.
Therefore, after thinking for a moment, Lin Chenfeng did not rush to refuse, but slowly said: "Boss Wang, I will convey your proposal to Martin and Brother Pony."
"Mr. Lin, thank you very much." Wang Xin replied.
at the same time.
After Lin Chenfeng hung up the phone, he went straight to Liu Zhiping's office door and knocked.
"Come in." Liu Zhiping responded.
Lin Chenfeng walked in immediately, and after he sat down, he said slowly: "Brother Martin, Wang Xin from Meituan called just now..."
"He wants to sell the company again? This person is capricious and not trustworthy." Liu Zhiping interrupted Lin Chenfeng's report.
"He wants to merge Meituan into QQ Group Buying and cooperate in the form of equity payment. Most likely he wants to gain access to traffic from WeChat and QQ."
Lin Chenfeng continued.
"No money? That's worth a try." Liu Zhiping thought for a moment and replied.
Although the relationship between Penguin and Senlian Capital is good, once their own interests are involved, both he and Ma Wenteng will hand the knife to Chen Yansen without hesitation.
This is the nature of businessmen! There is no such thing as friendship in this world! There is no such thing as a good person who can build a company worth tens of billions.
If there is, it's just acting.
"Come with me and listen to Pony's ideas first." Liu Zhiping said, and took the lead to walk out.
Lin Chenfeng followed behind.
Five minutes later, the two walked into Ma Wenteng's office.
"Merge with Meituan? It can indeed raise the value of QQ group buying, but who will be in charge of the business? Wang Xin?" Ma Wenteng frowned and asked Liu Zhiping.
The current business manager of QQ Group Buying is Luo Xi. The entire team has more than a thousand members, including the remnants of Gaopeng.com and Ftuan.
Because of the current QQ group buying, it merged Gaopeng.com and Ftuan last year.
To put it bluntly, it is the eliminated alliance in the Thousand Regiments War.
With the penguin on my back, I can neither die nor get up, and I am hanging there half-dead.
Ma Wenteng originally wanted to pass QQ Group Buying to Liu Qiangdong, but after receiving financing from OTPP and Saudi Kingdom Capital, Liu Qiangdong immediately turned his back on the deal and tore up the letter of intent for cooperation.
"Wang Xin is not a member of Penguin." Liu Zhiping replied indifferently.
The implication is that it is okay to take over Meituan, but Wang Xin must be kicked out.
"Will Wang Xin agree?" Ma Wenteng smiled.
He knew very well that Wang Xin just wanted to take advantage of Penguin's mobile traffic resources.
Although the words are nice, they cannot hide the fact that the other party wants to "hook up with a rich man".
"Let Chen Feng give it a try. It won't cause any loss to the group anyway." Liu Zhiping said indifferently.
If Wang Xin does not agree, there is no need for Penguin to merge with Meituan.
Meituan’s valuation is only about 500 million US dollars, while Kuaipao’s valuation is 5.8 billion US dollars. Penguin holds a 10.1% stake, which is worth nearly 600 million.
For Ma Wenteng and Liu Zhiping, the greatest strategic value of integrating Meituan into QQ Group Buying is that it will increase the valuation accordingly, which will give them more bargaining chips when selling the company to external parties in the future.
That afternoon, after Wang Xin received Lin Chenfeng's reply, he felt disheartened.
Ma Wenteng didn't give him any chance! It was not difficult for him to detect from Lin Chenfeng's tone that Penguin had no intention of deepening its roots in the group buying industry.
He wanted to use the penguin as a springboard, and the penguin wanted to use him as a stepping stone, and they were not even willing to pay a penny.
Wang Xin wanted to take advantage of the opportunity to take over QQ Group Buying, but forget it! Wang Xin, who recognized the reality, smiled bitterly and could only bite the bullet and continue to fight with Kuaipao, Lashou and Dianping.
At the same time.
Tens of thousands of Kuaipao riders across the country also gradually heard about the company's completion of its Series B financing.
The first batch of more than 5,000 deliverymen who joined Kuaipao basically had 2,000 to 3,000 stock options.
There were only about 500 riders who were converted to regular employees in Q3 and Q4 last year.
Calculated at the current price of 5.8 U.S. dollars per share, the best among the first batch of Kuaipao riders have the most options, up to 6,000 shares, and the option income alone is more than 200,000 yuan.
In just one year, the value increased by more than 100,000! The job-hopping rate of Meituan and Qiandu Waimai riders began to soar! (End of this chapter)
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