What happened: Mogu Inc., the fashion and lifestyle e-commerce platform backed by Tencent, made its debut on the New York Stock Exchange on Dec. 6, joining a string of Chinese tech companies pressing for a US IPOs. The company’s shares closed at $14, the lower range of its IPO price range. Mogu’s shares give the company a market valuation of about $1.3 billion, much lower than the $4 billion it expected earlier this year.
Why it’s important: As an early entrant to China’s fashion and cosmetics vertical, Mogu has managed to carve out a niche in China’s e-commerce market that’s dominated by tech giants like Alibaba and JD. Despite its close ties to Tencent, its troubled relationship with Alibaba, the source of its product referrals in the early days, and rising competition from local peers like Vip.com and Jumei have slowed down the firm’s development. Mogu is the latest Tencent-backed company to go public, following Meituan Dianping, NIO and Tencent Music.