China's emerging e-commerce platform Pinduoduo announced today that certain long-term investors have agreed to purchase through a private placement a total of $1.1 billion of newly issued Class A ordinary shares of the company.
This represents approximately 2.8% of the company's total outstanding shares. The transaction is expected to be closed in early April 2020, the company said.
The newly raised funds will be mainly used to promote the upward movement of agricultural products in China, promote strong convection in urban and rural economies, and at the same time drive the transformation and upgrading of foreign trade enterprises and China's C2M industrial belt for "new infrastructure" infrastructure transformation.
In 2020, Pinduoduo will continue to expand the scope and intensity of "ten billion subsidies" in the new consumption field.
According to Pinduoduo's Q4 and full-year financial report for 2019 released on March 11, as of December 31, 2019, the company's net cash on the books was 34.9 billion yuan.
By the end of 2019, the number of active buyers on the platform reached 585.2 million, with a net increase of 48.9 million in a single quarter, a net increase of 167 million compared with the same period of the previous year.
In the fourth quarter of 2019, the average number of monthly active users of Pinduoduo APP reached 481.5 million, a net increase of 51.9 million in a single quarter, a net increase of 209 million over the same period of the previous year.
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