Children's wear brand PatPat is considering IPO.

Children's wear brand PatPat is considering IPO.

Children's wear brand PatPat is considering IPO. Paipai was founded in 20 14 Silicon Valley, USA. The company is a DTC cross-border e-commerce, and its products are mainly suitable for infants aged 0- 12. Children's wear brand PatPat is considering IPO.

Children's wear brand PatPat is considering IPO 1. According to informed sources, PatPat, a maternal and child clothing website, is considering an initial public offering (IPO).

An insider who did not want to be named because the news was not made public said that the company invested by Softbank Vision Fund Phase II had preliminary discussions with potential consultants. They said that the stock issue could be carried out as early as this year and could raise about 500 million US dollars. Two of them said that PatPat's valuation may be around $3 billion.

According to people familiar with the matter, the company operating under the name of Interfocus Inc is considering listing in Hong Kong and other places. A person familiar with the matter said that it may also choose to list in the US.

People familiar with the matter said that the negotiations are still in progress, and the details such as the scale, place and time of issuance may change. Paipai did not immediately respond to a request for comment.

Paipai was founded on 20 14, with children's wear (0- 14 years old) as its main business, and is committed to building a global brand of maternal and child family consumption scenes. According to the "Enterprise Check" data, since 20 14, Paipai has raised seven rounds of financing, totaling more than 800 million US dollars. Investors include investment institutions such as Softbank Group, DST Global, SIG Haina Asia and Sequoia Capital.

Pat, as the leader of DTC maternal and child e-commerce brand, has entered its eighth year. As an early mature DTC brand, it has now gained 654.38 million+fans on social media platforms, compared with 6 million+in the case we wrote last August.

The patted social media data continues to grow, and the growth rate is also very fast. However, with the change of its social media homepage scale and operation strategy, the measurement standard of its social media influence will also change to some extent.

The overall influence of patting the brand is still very strong. However, with the increase of social media operation and marketing of its market segment homepages (such as France and Spain), each individual market segment homepage is more like an independent brand. On the one hand, the synergistic effect is not obvious. On the other hand, the refined operation of regional homepages has also had a side effect on the growth of social media data on global pages.

Children's wear brand PatPat is considering IPO2. After Shein, another cross-border e-commerce unicorn was exposed by the media and will be listed soon.

According to financial reports, Super Unicorn Paipai is considering an initial public offering (IPO), which may be held as early as this year, with a possible financing of about 500 million US dollars and a valuation of about 3 billion US dollars. It is also reported that the company is considering listing in Hong Kong, or it may choose to list in the United States.

As the negotiations are still going on, people familiar with the matter said that the details such as the scale, place and time of the auction may change. PatPat did not immediately respond to a request for comment on the listing rumor.

With a valuation of $3 billion, how did pat develop?

Three technical men build children's clothing brand unicorn

Paipai was founded in 20 14 Silicon Valley, USA. The American company is Interfocus Inc, the China company is Shenzhen EF Technology Co., Ltd. and Hangzhou EF Technology Co., Ltd., and the company is a DTC cross-border e-commerce. The products are mainly suitable for infants aged 0- 12, with more than 20 million users.

Patpat's three founders all graduated from Carnegie Mellon University, and one of them, RoyceWong, had the initial entrepreneurial experience of selling domestic cartoons abroad.

Although it sounds incredible, a college graduate and former chief engineer of Oracle Bone Inscriptions (Oracle Bone Inscriptions) high flyers sells comics, and RoyceWong made his first venture a success. According to the information of Mobidick's going to sea, he sold more than 50 cartoons at that time, each of which had the right to distribute overseas, and the total sales in one year was more than RMB 1000.

What makes Wang Neng do well is that he has established a two-tier translation system, so that the details of domestic films can reflect European and American styles and make domestic films look like international brands. It is these accumulations that make RoyceWong know how to build a brand. Three computer science and engineering men with no clothing experience have successfully established a B2C export mother-infant e-commerce platform PATPATPat.

According to the enterprise survey, as of August, 20021year, Paipai has had several rounds of financing, of which Round D has completed financing of 5 1 10,000 USD, setting a new record for the largest single financing disclosed by the domestic cross-border e-commerce industry at that time. Subsequently, in the D+ round, Softbank Vision, founded by Sun Zhengyi, an internationally renowned investor and the vane of VC/PE circle, invested 65.438 USD+600 million USD exclusively.

In addition, the patted investors also include Sequoia Capital, IDG Capital and transatlantic investment, which can be described as the darling of capital.

Pat is not only recognized by the market, but also loved by the public. It has been recommended by North American Apple iTune Store for many times. And according to the cross-border curiosity data of WeChat official account, Paipai has a considerable number of fans on social platforms such as Facebook, Ins, Tik Tok and Youtube, among which the number of fans like Facebook's main account has exceeded 6 million.

On the track of cross-border e-commerce, why can pat seize some markets in the field of children's wear?

How did PatPat go to sea?

In recent years, the domestic market is gradually saturated, and the industry competition is also intensifying. According to the data disclosed by institutions, in the e-commerce retail platform market, the top five markets are Taobao (5 1%), JD.COM(20%), Pinduoduo (15%), Tik Tok e-commerce (5%) and Aauto FMCG e-commerce (4%), and the rest of the market share is divided by other platforms.

Under this trend, going out to sea has become a good opportunity for many e-commerce, and the epidemic has accelerated the development of online retail platforms, providing a broad space for platforms such as patting.

Moreover, according to the data of Arafish in Zhihu, the North American market that PATPat is facing is one of the markets with the greatest demand for infant clothing at this stage. The data shows that in 20021year, the sales revenue of infant clothing in North America accounted for 17% of the global infant clothing market, reaching the scale of nearly 7 1 billion dollars.

At the same time, the DTC mode adopted by pat has certain operational advantages.

First of all, the traditional export model adopts the model of factory-exporter-brand-distributor-retailer-user, which has financial cost and time cost, and the profit is easily swallowed up by exporters. DTC mode opens up the intermediate link, allowing the goods to be delivered directly from the factory to the users, which can save most of the expenses, thus reducing the cost and supporting the pat to set the low price for the goods.

Secondly, DTC mode depends on private domain traffic, that is, it can directly reach users. This can analyze users' needs in real time, enhance competitiveness and reduce the cost of obtaining customers. The rapid growth of infants and young children has led to the fact that maternal and child products themselves are an industry with a high repurchase rate.

As mentioned in the preface, Wang Can has experience in brand building. He set up a five-person copywriting team for PatPat, two of whom are American employees, who are responsible for polishing Chinese-English translation, and also hired professional designers and photographers locally to enhance the style of products. Moreover, in order to better adapt to the American market, Paipai has also established a local team to better understand users' habits and culture.

This makes PatPat's products look more European and American, which is very helpful for brand building and makes consumers feel more cost-effective.

In addition, since 16, Paipai has set up offices in Shenzhen and Guangzhou. In terms of logistics, Paipai has set up its own overseas warehouse in Europe and America, and the logistics transportation time is controlled in 4- 10 days. Its founder also said that it will eventually build its own logistics.

In addition, it should be noted that Paipai built its own website by building an independent station, so last year's Amazon "title tide" did not affect the brand, while the cross-border sales of "Youshu" were blocked by 340 sites, and the frozen funds reached 65.438+0.3 billion yuan. According to the statistics of cross-border electronic commerce Association, the industry loss is estimated to exceed 1000 billion yuan.

From the above aspects, it is not difficult to understand that patting can win the favor of capital and users.

However, as a DTC cross-border e-commerce, Paipai may be affected by policies. Moreover, Amazon is at the head of cross-border e-commerce, with high popularity and market share. According to Statista's data in 2020, Amazon is the preferred cross-border e-commerce platform for 26% consumers around the world.

However, the auction market is too vertical. Compared with Amazon, it is definitely not big enough, so it may not be easy for brands to seize more market share in the future.

At the same time, although PatPat has received a lot of praise, there are also many low scores. A user who scored three points on the Apple App Store left a message saying that PatPat is not easy to cancel the order, indicating that the brand's app needs to be improved. A mother also wrote that PatPat's clothes are generally good, but there are also some minor flaws, such as the label of small clothes is not easy to remove, and there are several small lines at the seams.

Even though these problems seem a little harmless, quality problems may still affect the brand image, which will harm the interests of the brand in the long run.

Gong Ting, managing director and managing partner of Sighner Asia, once said that he is firmly optimistic about the market opportunities of China's supply chain going to sea and cross-border DTC, and expects Patpat to continue to strive to become the world's leading children's wear brand. GGV ggv capital has also said that PATPATPat is the team that it sees pursuing the ultimate in all aspects, and believes that it can become the world's leading DTC brand in the future.

Although PATPATPAT PAT is not perfect, it is likely to get more development opportunities after listing in the future. As Munger said, it is wrong to do nothing. Therefore, it's probably something that PATPATPat has to do before and after it goes public, to keep the existing advantages and keep moving forward, and to fix the defects.

Children's wear brand PatPat is considering IPO3. According to foreign media reports, PatPat, a cross-border e-commerce company and the world's largest DTC brand for children's wear, is reportedly considering an IPO, with a valuation of around $3 billion.

According to a person familiar with the matter, Paipai has held preliminary discussions with potential investment banks. They said that the IPO could be completed as soon as this year, with an estimated financing of about 500 million US dollars.

According to people familiar with the matter, Paipai is considering listing locations, including Hong Kong. A person familiar with the matter said that it may also choose to list in the US.

PatPat was founded in 20 14 in Silicon Valley, USA. It is the largest and fastest-growing DTC brand for children's wear in the world, and its users cover more than 0/00 countries and regions around the world. In Q4, 2020, China's overseas social networking platform 100 ranked first in the e-commerce category Top 1 and the overall list Top 9, and it was a big V account with 6 million+fans on Facebook.

Paipai was founded by RoyceWong (CEO) and Gao Shen (Chief Operating Officer) in Mountain View, Silicon Valley, California, USA on 20 14. The two founders are classmates and colleagues for many years. They both graduated from Carnegie Mellon University and served as chief engineers in Oracle Bone Inscriptions Company. When Gao Shen's wife was pregnant with her first child, he found that the children's wear industry was seriously lacking in fashion and practicality, so they created a shopping platform together so that mothers could find rich maternal and child products for themselves and their families without spending a lot of time and money.

PatPat, after several rounds of financing, its investors include: Softbank, SIG Haina Asia, Fengrui Capital, Sequoia Capital, CDH Baifu, Today Capital, Transatlantic Capital, CDH Baifu, Ocean Link, Luce Capital, DST Global Leading Investment, GGV ggv Capital, etc.