VC-backed Lashou targets $100m in US listing

Lashou Group has filed its IPO prospectus to list Class B ordinary shares on the NASDAQ under the ticker symbol "LASO." The process is being underwritten by Barclays Capital, CICC HK Securities, and Jefferies, Chinese technology research firm Marbridge Consulting reported. Details of its timeline have not been disclosed.

Lashou, which launched in March 2010, has received more venture capital backing than any of China's group-buying sites, AVCJ Research shows, accumulating $166 million in three fundraising rounds. In April, VCs Milestone Capital, Richemont's affiliates Reinet Fund SCA FIS, Remgro Limited and previous investors GSR Ventures, Norwest Venture Partners and Tenaya Capital contributed to a $110 Series C raise.

The company, which has been dubbed "the Groupon of China," announced $60.5 million in losses for the first six months of 2011, and claimed $8.9 million in revenue. This loss has been attributed to a steep rise in its sales and marketing expenditure, which rocketed from $6.2 million to $50.12 million in the first six months of 2011, Reuters found.

Group-buying rival Gaopeng, backed by Groupon and Tencent, posted a $46.4 million net loss in the first nine months of 2011, and claimed only $2.1 million in revenues.

In the 18 months to September, AVCJ sources said 3,600 group-buying websites entered the market, and approximately 10% of those received capital from outside sources. Investing in such sites remains a risky business given their uneven paths to monetization, but if Lashou's listing is successful it could feasibly lead to more exits.

A host of internet firms have sought to leverage Western interest in China's digital growth in the last year. Recently-listed companies include social networking site Renren.com and online video providers Youku and Tudou.

Meanwhile, US-based Groupon two weeks ago set a price for its anticipated listing on the NASDAQ, valuing itself at $11.4 billion. It plans to offer 30 million shares, or approximately 4.7% of its total equity, at $16-18 apiece. The company announced in September that it would postpone its IPO until market conditions ameliorate. It had initially targeted a $750 million raise, which would have valued the company at approximately $20 billion.

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