China e-commerce SaaS player files for Hong Kong IPO
Jushuitan, which claims to be China’s largest e-commerce software-as-a-service (SaaS) enterprise resource planning (ERP) provider, has filed for a Hong Kong IPO.
Founded in 2014, the company has raised several rounds of VC and PE funding. The most recent of these, a USD 100m Series C in 2020, was completed at a post-money valuation of CNY 6bn (USD 832m), according to a prospectus.
That round was led by Goldman Sachs, CICC Capital, and Blue Lake Capital. Those investors now hold stakes in Jushuitan of 5.83%, 2.47%, and 3.14%, respectively. The largest external shareholder is Ameba Capital, which featured in the pre-Series A and Series A rounds alongside WeLight Capital. Ameba owns 10.86% of the company, while WeLight has 2.96%.
Other significant investors include HongShan, Vision Plus Capital, and GGV Capital on 7.5%, 4.37%, and 2%. HongShan - formerly Sequoia Capital China - led the third tranche of Jushuitan's Series B in 2019.
The company had a 20.7% share of China's SaaS ERP market in 2022, according to China Insights Consulting. During the year, it served 45,700 SaaS customers - up from 33,100 in 2021 - and connected them with over 350 e-commerce platforms in China and across the world.
Jushuitan allows merchants to integrate, synchronize and coordinate all of their stores, orders, products, inventories, and other operating or financial data from various platforms. Key features include systems for managing orders, warehousing, procurement, and distribution.
In 2021 and 2022, Jushuitan achieved net dollar retention rates of 122% and 105%. The company claims a market-leading lifetime value-to-customer acquisition cost ratio of more than 6x in the past three years. This ratio is used in SaaS to illustrate unit economics and customer acquisition efficiency. In 2022, customers that purchased two or more Jushuitan products contributed 30.6% of total SaaS revenue for the year.
Overall revenue came to CNY 523.1m in 2022, up from CNY 433.4m a year earlier. The company's net loss widened from CNY 254.3m to CNY 507.1m, which was attributed to historical investment in customer acquisition and product innovation.
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