Talk about a big deal. The Chinese direct to user online retailer JD.com, formerly known as 360buy, is filing the necessary paperwork with the Securities and Exchange Commission in the United States to go IPO in the USA. How much are talking about? The company is trying to raise 1.5 billion dollars in the United States. This is a big deal for a company with a big vision. This company is very interesting because it does things differently. Most people are already aware of Alibaba. Alibaba is basically an online classified ads for Chinese manufacturers who wants to sell their machines and wares outside of China to foreigners. Consider Alibaba and its similar competitors like Tmall and Taobao as online classified ads for Chinese manufacturers and wholesalers.
Well, JD.com is different. It has a platform where ordinary buyers can login to its website and buy directly from them. You don’t have to hassle with many different manufacturers. You don’t have to hassle with different order fulfillment systems and frankly, different customer service philosophies. You’re dealing with a unified company and the company will then sourced its materials from third party retailers. This is a refreshing model because it’s quite similar to the Amazon model. Well, there’s a lot of cheap stuff to buy in China and it’s going to be very big considering the fact that JD’s platform racked up 73.3 billion yuan in 2012.
It’s looking like this company is going to be a very big play in the United States. Just how big is JD.com? It has 82 warehouses distributed in 34 Chinese cities. Its delivery stations number 1,453 and it operates in 460 cities with 209 pick up stations. It has a massive army of 18,000 delivery people. JD.com looks like the Amazon of China. In terms of its funding, it raised 191 million dollars in funding to date. We are confident that this company will raise 1.5 billion dollars in its IPO and if it continues with its very promising growth rate, it might be a great stock to buy. Assuming that there is no stock crash that is.