E-commerce marketplace Wish filed its IPO prospectus with the Securities and Exchange Commission on Friday, which included a number of technology companies that made their debuts before the end of the year.
Wish’s parent company, Contextlogic, plans to list its shares on the Nasdaq under the symbol WISH. The filing provides the first look at Wish’s financials after it was confidentially filed by the company to go public in August.
Kash, founded in 2010, is an online marketplace that has a range of discounted items, from cheap household items and apparel to electronics and toys. Compared to Amazon, I wish shoppers of “every socio-economic status” are targeted, who may not be able to afford $ 119 per year for Prime.
“We aspire to serve these consumers, who are in favor of affordability for brand and convenience, and are being underscored by traditional ecommerce platforms,” the filing says.
In general, the company is skyrocketing without loss. Wish reported that $ 1.75 billion in revenue for the nine months ended on September 30. This is a 32% growth rate from $ 1.33 billion during the same period last year. However, revenue increased only 10% between 2018 and 2019.
Vishes is showing slower growth from a much lower base than retail and e-commerce giants like Amazon, Target and Walmart. In the third quarter, Amazon reported first-year sales up 38% year-over-year to $ 48.4 billion, while third-party merchant sales grew 55% to $ 20.4 billion. Target and Walmart, which both gained a major lift from epidemic-fueled online shopping, saw their third-quarter digital sales a year earlier, at 155% and 79%, respectively.
While growth for start-ups has been lacking significantly, its bottom line has remained fairly stable – it incurred losses of $ 247 million in 2017, $ 208 million in 2018, and $ 136 million last year. In the first nine months of 2020, it lost $ 176 million.
Wish said it now counts more than 100 million monthly active users in more than 100 countries, exceeding the previously reported total of 70 million monthly active users. The platform has been signed by over 500,000 merchants to sell on the platform and its list has grown to 150 million. Most of its merchants are based in China, but it added more vendors from the US to its platform in 2019.
The desire is becoming public at a time when e-commerce has gained a shot in the arm from the coronovirus epidemic. Like many retailers, Wish said it experienced long delivery times, supply chain disruptions and the loss of some merchants on its platform at the height of the epidemic. However, it also said that the lockdown also benefited from higher mobile usage and less competition from brick-and-mortar retail.
Airbnb, DoorDash, Roblox and online lender Affirm have also filed to go public in the past week, taking advantage of the post-election rally in US stocks and investor demand for high-growth tech names. The companies are trying to hit the market in the period between Thanksgiving and Christmas, people familiar with their plans told CNBC last week.
– Ari Levy of CNBC contributed to this report.