Onion Global, a Chinese E-commerce Platform, Eyes US IPO

This platform, targeting the young consumer, doubled its profits in the year of Covid-19.
Jennifer ChanApr 08,2021,20:03

Onion Global Ltd., a fashion e-commerce platform in China, has applied to sell its American depositary shares on the New York Stock Exchange.

Based in Guangzhou, the operator of O’Mall sells products in 23 categories from 4,001 brands, including 86 brand partners and 21 private label brands which it had incubated. Targeting the young consumer, it sells under the “3F” principle, selecting “fresh, fashionable and future” brands, some of which are overseas brands, the company wrote in its prospectus filed Wednesday.

Onion Global has enjoyed fast growth, even amid the troubles of Covid-19. The company achieved GMV of 1.3 billion yuan in 2020, up 36% year-over-year. Revenues in 2020 reached $584 million, up 33%, while income doubled from 2019 to $31.9 million, according to the filing. The number of registered users on O’Mall doubled year-over-year to 15.1 million by late 2020, and the number of active buyers had surged 132% to 2.2 million.

The company operates warehouses in China and Hong Kong and sources some of its products from overseas, with delivery time ranging from one to 10 days. To promote its brands, O’Mall employs key opinion consumers (KOCs) who test and recommend its products, uses livestream marketing and third party platforms, as well as offline channels.

Citing a report by China Insights Consultancy, Onion Global said its platform ranked among the top five social e-commerce platforms in terms of GMV generated from cross-border online retail as of December 2019.

Onion Global was founded in 2015 by Cong (Kenny) Li, who formerly worked at Procter & Gamble China and Nike China. Earlier, he founded and led another e-commerce platform called Hua Niang.

The company said it plans to use the IPO capital for the development of private label brands and brand partnerships; for expansion and diversification of its distribution channels, boost its technology, and other purposes.

AMTD Global Markets Ltd., Huatai Securities (USA) Inc., Roth Capital Partners LLC, Tiger Brokers (NZ) Ltd., and Valuable Capital Ltd. are securing the deal. The expected ticker symbol for the listing is “OG.”

Onion Global has set $100 million as a placeholder IPO size. The exact IPO target has yet to be announced.

Topics:Onion global, Omall, OG, E-commerce, China