An Alibaba-backed e-commerce company files for a U.S. IPO
April 22, 2015 04:00 PM
Shanghai-based Baozun Inc., a Chinese e-commerce services provider, has filed for an initial public offering on the Nasdaq stock market, hoping to raise $200 million, according to its prospectus.
The largest shareholder in Baozun is Alibaba Group Holding Ltd., China’s dominant e-commerce company, which owns a 23.5% stake. Other investors include Japan-based Softbank Corp., U.S.-based Goldman Sachs Group and Israel-based investment firm Infinity Group, according to Baozun.
Founded in 2007, Baozun helps international consumer brands and retailers build and operate e-commerce sites and online stores on marketplaces in China, such as Tmall.com, JD.com and Amazon.cn, as well as social media platform Weixin. The company also provides marketing support, customer service and logistics services to brands.
Baozun says it serves nearly 100 clients, including such Western brands as Nike, Toms, GoPro, Philips, Toyota, GNC, Pepsi, American Standard and Insurance company Allianz.
The company generates revenue in two ways. In some cases the company buys the products from brands and sells to consumers directly through online stores under license from those brands. In other cases, Baozun works as a service provider for the brands, which own the inventory and pay Baozun a fixed annual fee and a commission on sales.
The transaction volume on all the stores managed by Baozun, either as the seller of record or as a store operator, rose 62% to 4.249 billion yuan ($685.3 million) in 2014 from 2.621 billion yuan ($422.7 million) in 2013. The company totaled $255.36 million revenue in 2014 and product sales account for 79.4% of its revenue, according to its filing.
The company also reported a net loss of $9.64 million in 2014 compared with a loss of $57.90 million a year earlier.
Baozun says proceeds from the stock sale will be used to invest in marketing, warehouses and expansion into other Asian markets.
JD.com is No. 1 in the Internet Retailer 2015 China 500. Amazon.cn is No. 5.