DiDi's IPO: Windfall for VCs but Bum Deal for Investors?

DiDi's IPO: Windfall for VCs but Bum Deal for Investors?

DiDi's IPO: Windfall for VCs but Bum Deal for Investors?

Technology Author: Linyan Feng Apr 30, 2019 02:02 PM (GMT+8)

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Pages45

CopyrightEqualOcean Intelligence

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Introduction

It might take years for us to tell whether it would be a windfall for its early investors and VCs like Matrix China, Softbank, and Tencent or it is a bum deal for investors to buy DiDi’s shares on the public market.

Highlights

  • We expect DiDi to have a market capitalization of USD 69.6 billion by the end of 2019 in our bear case scenario, which is approximately 35% above the USD 51.6 billion valuation implied by Uber’s prospectus
  • We project strong gross bookings for DiDi at a 25% 5-year CAGR through 2023, resulting in net revenue of USD 27.6 billion in 2023 (equivalent to USD 157.8 billion gross bookings in 2023)

Contents

  • 1 Growing Addressable Market and Car Sharing Economy
  • 2 Excellent Network Effect, Bad Network Effect?
  • 3 New Competitors and Authorities Pose Challenges
  • 4 DiDi is Expanding its Tech and Business scope
  • 5 We Estimate DiDi’s Valuation
  • 6 Appendix & Endnote

In this report

31
Charts

On various aspects of DiDi's business

1
Market projection

Pivotal to the company's growt

Selected reports
Chinese Enterprises in Europe Report 2023
China Technology Industry Trends to Watch 2023
2022 China New Energy Tech Industry Report
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