Chapter 307 Valuation of $2.8 billion
"By the way, I have already completed the full employee stock ownership plan you asked for last time!"
Zhou Xiaoqing found a plan in the filing cabinet and handed it over.
Since the development of the group buying industry, due to the financial crisis in 2008, the first "Thousand Group War" was far less brutal than the one in another time and space, and it ended early.
But competition will always exist.
QQ Group Buying, Dianping, and Qiandu Nuomi, in addition to constantly competing with Meituan in the market, also continue to poach employees with high salaries.
For a time, Meituan Company lost many elites.
In this case, the best way is to give employees a sense of belonging.
In addition to giving the management a small amount of shares and options, there must also be no shortage of elite backbones.
Qian Jiawei kept using options to deceive the team. But fortunately, although Lu Yan was careful in his calculations, he continued to push options down layer by layer until this moment of the "full stock ownership" plan.
Lu Yan opened the document and took a look. Regular employees who signed a labor contract for six months before July 1st and are currently employed can be eligible for the first phase of public option issuance. The number of options issued is 500 shares per person, and each share is 500 shares.
The exercise price is US$0.96 and will be redeemed within four years.
The options allocated to individual employees are not particularly large, but if they are listed on the market, they will still make a considerable profit.
Furthermore, having this thing is like dangling a carrot in front of the donkey's eyes, keeping it hooked and striving to move forward.
Other companies want to poach people, and the loss in options is an unavoidable hurdle.
"Okay, let's execute this!" Lu Yan read the document carefully and signed it.
Zhou Xiaoqing glanced at it before locking it in the cabinet. She turned around and said, "In this case, you will tie everyone in the company to the chariot!"
Lu Yan smiled: "The shopping mall is like a battlefield, not to mention this kind of money-burning strategy. There is no way out!"
He slowly said again: "By the way, what did Ah Li say?"
Zhou Xiaoqing smiled: "Of course I want to lower the valuation. In my estimation, it should end up at 2.8 billion US dollars, more than three times last year! In addition, since last month, the company's profit and loss has achieved a monthly balance for the first time. By the end of the year, it is expected to be
No loss!”
Don't expect Meituan to be the leader of domestic group buying companies, with a firmly leading market share. However, due to the consideration of occupying the market, it has always been operating at a loss, but its valuation is getting higher and higher, which is very different from traditional enterprises.
Big difference.
Just like the original QQ, even 500,000 yuan could not be sold because many big guys could not see its value.
Brother Xiao Ma also said, I don’t know where the profit point is, I just know that many people like it and everyone who surfs the Internet uses it. Finally, I found the right profit model and the company prospered.
These days, everyone is competing for users, traffic, and entrances!
"At this stage, we still focus on developing the market. As long as we can maintain a break-even balance throughout the year, don't think too much about profits!"
Zhou Xiaoqing nodded and said, "I understand!"
Immediately he sighed, "In the past, I always thought that the real estate business was good, but now it seems that the Internet business is not bad either. With a valuation of US$28 billion, how many houses have to be sold!"
Lu Yan smiled: "Both methods of playing, no matter which one is done well, it is not easy!"
"Yes!" Zhou Xiaoqing sighed with emotion, and then said: "You said that one day, if the company goes public, what will its market value be?"
"It's still two to three hundred billion yuan!"
"There will be so many? Wouldn't that be higher than the market value of my real estate company!" I still couldn't believe it.
Although this is the BAT era, and the market value of the three Internet companies is very high. But I don’t dare to think that Lu Yan’s casual group buying website that can be easily imitated will one day grow to a market value of hundreds of billions!
However, no company can succeed easily.
Even if it succeeds for a while, its prosperity will be rapid and its demise will be sudden!
Just like Ali, which is enjoying great success at the moment and is preparing to lead the investment in Meituan, there is also a huge crisis lurking in it.
That is the blacklist incident. The cause was that at the end of 2010, Ali Group co-founder Jiang Shu was transferred to manage the integrity and security of Zhonggong, which was dedicated to investigating and punishing all kinds of bad guys who would do anything to make quick money.
In January of the new year, Jiang Shu mentioned his work content in a mass email.
"In 2010, the number of buyers who came to complain that they were scammers increased 20 times every month compared to 2008. It was also found that in some sales, one person signed up for dozens of scam companies, and even received the company's commission.
Taking bribes from swindlers in one hand! It’s so fucking annoying! Now I’m very glad that I have been assigned to manage this business. The business that we all managed to build back then cannot be destroyed by a bunch of swindlers even if it is blown up...!”
After Ma Yun accidentally saw this email, he called Jiang Zhi and then went to Wei Zhe, who was in charge of the China Railway Supply Army, to inquire about the situation.
Starting from about the first half of 2010, Ali Company called the scammer customers who could not be signed as blacklist customers. Wei Zhe knew the scale of the blacklisted customers, but he was not sure about the internal and external collusion between employees and the blacklisted customers.
Ma Yun was dissatisfied and went to the bottom of the investigation. In the end, everyone from Ali B2B Company including CEO Wei Zhe, the company’s VP and director, and down to ordinary salespeople resigned one after another.
In another time and space, Gan Jiawei finally left the China Railway Supplies Army and joined Meituan, which was due to this factor.
Now, Gan Jiawei arrived at Lu Yan’s Meituan company ahead of schedule and controls the “local promotion army”.
On the one hand, we need to use carrots to induce front-line staff to promote the products. On the other hand, we need to strictly investigate sales staff who collude with merchants to defraud the company's subsidies.
For this reason, Lu Yan even fired two regional managers and fired many salesmen.
It is this style of rapidly expanding the market and paying close attention to management that makes several investment companies optimistic about the development of Meituan.
After all, if the management is in chaos, no matter how much money is invested, it will not be able to help it.
In the blink of an eye, in early August, Meituan’s Series B financing was officially launched, with a valuation of US$2.8 billion and a financing of US$300 million.
Ari Corporation led the investment, and Sequoia Capital, General Atlantic Capital, and Bao Group also participated in the investment.
As soon as the news came out, it really shocked the Internet, investment and entertainment circles in an instant.
Because in everyone’s opinion, Meituan is growing too fast, giving people no time to respond and rise quickly.
After such investment and valuation, there is really no other company in the industry that can match it.
Even if Penguin desperately supports Dianping and QQ group buying, and Qiandu supports Nuomi, it will be difficult to compete.
At the signing reception, a reporter curiously asked Ma Yun why he dared to agree to such a high valuation!
Ma Yun laughed and said: "The true meaning of investment lies in investing in people! Lu Yan, his name alone is worth 300 million US dollars, which is unmatched by other group buying companies.
He came up with the entire business model, how can others compare?"
Chapter completed!