Jingdong Mall Grabbed $400M Round at $7.25B Valuation

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Local media broke (here and here) that JingDong Mall, the Chinese B2C giant has just completed a new US$ 400 million financing round which values the company at US$ 7.25 billion (another saying we heard is raising US$ 350 million at $7 billion valuation). Some of the investors in this round include OTPP (Ontario Teachers’ Pension Plan) and former participant the Tiger Fund.

Jingdong confirmed the financing, though didn’t mention any details.

It’s conceivable why it didn’t want attract too much exposure to the deal. In the company’s stunning Series C, it obtained US$ 1.5 billion at more than 10 billion valuation. Now with time flies, the company’s valuation also shrinks to only 7.25 billion.

Jingdong getting ready for an IPO was first brought into our attention in this June when the company was rumored to target getting listed by this September. However, volatile in capital market put the deal on hold.

Li Guoqing, CEO of Dangdang once made a personal and wild guess that 360buy was running out of cash. The thought was echoed by commonplace speculation that Jingdong was losing money quickly due to strings of price wars and fast expansion. In a nutshell, Jingdong has to raise the round to sustain its money-bleeding business. Industry insider put Jingdong’s loss rate at between 5.7% and 5.8%, or approx. US$ 480 million on 4.8 billion annual sales.

 

Jingdong Fundings

Series A     Aug. 2007   10M    CapitalToday

Series B     2009             21M     CapitalToday, BULL CAPITAL PARTNERS, etc

Series C1   Jan. 2010   150M   Tiger Fund, etc

Series C     April, 2011  1.5B     Tiger Fund, DST, etc

 

  • Etc

    By “etc” you mean Sequoia, KPCB….