With a potential U.S. initial public offering (IPO) on the horizon that could value the company at as high as $2 billion, 58 Home is near the conclusion of a private fundraising round, per unnamed sources cited in a Bloomberg report. The company is owned by 58.com Inc., which is said to be the Craigslist equivalent in China.
58 Home is reportedly one of the country’s leaders in enabling consumers to find services online ranging from house cleaning to flower delivery. It is competing for market share against rivals that have more resources, including some businesses operated by Alibaba Group Holding Ltd. as well as Meituan Dianping.
The business is looking for funds to back an expansion into the competitive online services space in China. According to the unnamed sources, 58 Home is now finishing a pre-IPO funding round at a valuation in excess of $1 billion. Once that is completed, the company intends to gear up for a debut in the United States, and could seek a valuation in the range of $1.5 billion to $2 billion.
The sources noted that the deliberations are still in a nascent phase, and details of the possible offering could still be in flux. 58.com spokesperson Liu Cong did not offer a comment, nor did a 58 Home representative. Shares of 58.com increased 2 percent in New York, per the report.
In separate news, reports surfaced in late December that Chinese eCommerce company JD.com Inc.’s logistics unit was in early talks with different banks regarding a potential IPO that could bring in $8 billion to $10 billion. JD Logistics was reportedly seeking a valuation of at least $30 billion. The firm is expected to choose banks for the offering in Q2 2020 and plans to use the funds for potential acquisitions and warehouse expansion.