Tencent-backed Beijing DMall E-commerce Co. is reportedly pursuing an initial public offering in New York this year that could raise it $500 million.
The omni-channel retail digital platform, competing against giants Alibaba Group (NYSE: BABA; HKEX: 9988), JD.com (Nasdaq: JD; HKEX: 9618), and Pinduoduo (Nasdaq: PDD) in the crowded online retail space in China, is talking to advisers on a going-public deal, eyeing the second half of 2021, according to Bloomberg.
Dmall is backed by Chinese retailer Wumart Group and tech giant Tencent Holdings (HKEX: 0700), as well as IDG Capital, Lenovo Capital, and Incubator Group.
Wumart, also known as Wumei, is one of China’s biggest supermarket chains, operating since 1994. According to its website, it operates more than 1,000 stores nationwide with annual sales of 50 billion yuan.
With Dmall, Wumart began expanding to e-commerce in 2015. Wumart is Dmall's first and the most important partner. Wumart is rumored to simultaneously prepare for a listing in Hong Kong, Bloomberg reports.
Dmall helps traditional retailers integrate online-offline sales by providing a mobile platform and relevant solutions including “fast and convenient checkout, instant delivery service, improved supply chain, optimized supply chain management, assortment management, inventory and warehouse management, membership management and marketing,” according to the company.
The company compares itself to Canadian-based e-commerce platform Shopify Inc. Dmall helps traditional retailers, mainly supermarkets, to expand their service both online and offline.
The firm, through its Dmall OS and MiniOS systems, facilitates retailers to achieve total digitalization and provides Retail Alliance Cloud services. Dmall OS, a digital solution provider, consists of 15 major systems and 800 subsystems. MiniOS is specifically designed for convenience stores. Retail Alliance Cloud Services offer integrated omnichannel services to the doorstep of stores and households, boosting operational efficiency and enhancing customer experience.
By partnering with Dmall, retailers can not only sell goods online through Dmall App, but also direct people to the shop or pick up their purchased goods at the store locations.
In addition, unlike Taobao or JD.com, the retailer using Dmall maintains absolute control over its pricing and online marketing strategy.
The Dmall App location service can auto detect if the customer is in or near the shop, offering the retailer the option to send out coupons or notifications accordingly.
Among its partners, Dmall counts more than 3,225 stores in Beijing, Shanghai, Hangzhou, Tianjin, Yinchuan, and Wuhan. By the end of December 2020, Dmall works with over 120 supermarket chains, covering 13,000 stores across China as of the end of October. The company’s app has over 180 million registered users and 19 million active monthly users, according to itswebsite.