China’s online real estate platform FangDD.com to pursue IPO in U.S.
Oct 09, 2019 (China Knowledge) - Chinese online-to-offline real estate platform FangDD.com aims to pursue an initial public offering (IPO) in the U.S. If successful, the Shenzhen-based company will become the first Chinese internet software as a service (SaaS) company to go public in the U.S.
Founded in 2011, FangDD.com, better known as Fangduoduo in China, facilitates property transactions between buyers and sellers through real estate brokers. The platform provides the brokers with big data and cloud computing services for the management of the various property transactions. FangDD.com is believed to have amassed a total of around 911,000 users at the end of last year, which is roughly 50% of all real estate brokers in China.
The residential property market in China had been growing rapidly in the recent years. The market is expected to reach RMB 33.4 trln (USD 4.7 trln) in market size by 2023, with a compound annual growth rate of 9.2%. However, most real estate brokers often face issues such as segmented market and data management problems, which are roadblocks in the growth of the Chinese property market.
FangDD.com has submitted its prospectus to the US Securities and Exchange Commission (SEC), and hopes to list on NASDAQ under the ticker DUO. The prospectus will undergo review and if successful, will make the company the first SaaS developer to IPO in the U.S.
FangDD.com’s revenue rose by nearly 150% to RMB 1.6 bln (USD 224 mln) in H1 this year. Its net profit increased around two-fold to RMB 100 mln (USD 14 mln).
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