VC-backed Chinese online marketplace targets $150m US IPO

According to a regulatory filing, the company will use the proceeds for general corporate purposes, including product development, technology investment and marketing. If successful, it would become the third VC-backed Chinese company to go public in the US this year.

Founded in 2005, 58.com is modeled after US site Craigslist, providing classified ads for flat rental, recruitment, second hand goods and cars. Its services cover over 300 cities in China. Most of the ads are free but the business charges if the advertisers want their posts to appear on the top.

The company's VC investors include SAIF Partners, DCM and Warburg Pincus. AVCJ Research shows SAIF initially invested $1 million in 58.com in 2006 and returned to put in an additional $5.77 million two years later.

SAIF then re-upped in March 2010 with a $15 million round alongside DCM. DCM returned later that year to invest another $45 million together with Warburg Pincus.

58.com saw its revenues grow from $10.7 million in 2010 to $87.1 million in 2012. However, it recorded net loss of $13.9 million, $83.4 million and $30.4 million in 2010, 2011 and 2012. In the first half of this year, the company had a net income of $0.3 million.

Last week, Montage Technology Group, a China-based semiconductor manufacturer backed by AsiaVest Partners and Intel Capital, raised $71 million through IPO in the US. In June, Beijing-based online retailer LightInTheBox became the first Chinese company to go public in the US this year. The company, which is backed by Ceyuan Ventures, GSR Venture and Trustbridge Ventures, raised $79 million.

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• Topics
• Greater China
• Exits
• Technology
• China
• IPO
• SAIF Partners
• DCM-Doll Capital Management
• Warburg Pincus Asia
• Technology
• USA