Dangdang to Raise USD 200 Mln by Year-End
China Business News, 9/26/10
Li Guoqing, co-president of Chinese B2C e-commerce site Dangdang, has disclosed that Dangdang plans to raise USD 200 mln in funding by the end of 2010, possibly through an IPO or private placement. Li could not yet disclose by which method.
Li said that the funds will be applied mainly towards Dangdang's logistics and technology platform, and support the company's expansion into the sale of general merchandise. While maintaining book sales as a revenue base, Dangdang has increased the share of revenue generated by general merchandise year-on-year, and Li estimates that general merchandise will account for 50% of sales within three years.
Li added that Dangdang's total revenue reached RMB 2 bln last year and the company has already achieved profitability, with employees holding approximately 15% of equity in options. Dangdang's general merchandise business will now focus on cosmetics, childcare and home furnishings products. Dangdang plans to enter the e-book market as well as launch its own brand of e-commerce products.
Keywords: financing Li Guoqing e-commerce Internet IPO revenue B2C e-book Dangdang HR branding
Sending
