Winning the new financial era

Chapter 251 Binding the Penguin
"Brother Ren, please sit down." In Pinduoduo's office, Zhang Yida gestured "Please" to Ren Yu.

Penguin acted quickly, and sent Ren Yu, the general manager of Penguin Industrial Investment Fund, to the capital the day after Zhang Yida sent out the financing request.

Zhang Yida gave Ren Yu a big compliment in his heart. He is indeed one of the top professional managers in the Penguin system, and his work efficiency is high.

Sun Yutong also went up to shake Ren Yu's hand, and said with a smile: "Mr. Ren, long time no see."

Naturally, Ren Yu recognized this former General Ahri, and he had heard that Zhang Yida had invited this person to sit in the town to fight Duoduo, so he was not too surprised, and responded with a smile on his face: "Yes, the last time I met with you It's been a few years since Mr. Sun met."

After the two exchanged a few pleasantries, Zhang Yida greeted them to sit down on the sofa in the office, and asked the secretary to bring some cups of tea.

"Yida, let's talk about the valuation of Pinduoduo." Ren Yu took a sip of tea, then put the teacup on the desk, and started talking about the business.

"The GMV in a single month exceeds 30 billion yuan, and it is expected that the total GMV in the next year will not be less than 360 billion yuan. According to the e-commerce valuation method, GMV multiplied by 0.6 is 216 billion yuan.

The current exchange rate is 6.55, so the pre-money valuation should be $33 billion. "

Ren Yu didn't know whether to laugh or cry after hearing this, and said with a wry smile: "Yida, you are too much, is the valuation so high?"

Zhang Yida shrugged and said: "I think it is very reasonable. Considering Pinduoduo's rapid growth, it is possible to reach 600 billion yuan in GMV in the next year."

"But since Pinduoduo went online, the 10-month GMV is about 130 billion." Ren Yu glanced at Pinduoduo's operation report on the case table, raised his head and remained calm. Zhang Yida was asked.

"You have also seen the business growth rate of Pinduoduo. The monthly compound growth rate exceeds 40%. Based on this growth caliber, the GMV may even reach hundreds of billions in one year." Zhang Yida pointed to Ren Yu With the operation report in his hand, he talked and laughed with a lot of confidence.

Ren Yu smiled and said nothing, the young man really dare to say, from 0 to 1000 billion GMV, it took Ahri 5 years and Goudong 10 years.

Do you dare to brag about Haikou, breaking 1000 billion GMV in two years?Those who don't know are fearless!
But he also understands Zhang Yida quite well. It is normal for Zhang Yida to be frivolous when he becomes famous at a young age and succeeds in starting a business every time.

"The monthly average compound growth rate of 40%, with the increase of Pinduoduo's volume base, it is impossible to continue.

You can maintain a compound monthly growth rate of 20%. "

Ren Yu put down Pinduo's operating report and expressed his opinion.

"Even if it's only 20%, after 12 months, Pinduoduo's monthly GMV has exceeded 200 billion yuan."

The only thing that Pinduoduo can do now is this "high-speed growth". Others, such as: the difference between revenue and profit is simply a mess.

Therefore, Zhang Yida has always avoided talking about revenue and profit, and only repeatedly emphasized GMV and high growth.

However, VCs don’t care about these things. If there is GMV, there will be orders, and there will be users and market share.

Ari and Goudong have already paved the way for Pinduoduo, and there is no need to explain too much to the market.

Zhang Yida also believes that Penguin is planning to invest in Pinduoduo because of this.

After Ren Yu read Pinduoduo's operation report, he was actually very surprised, but he covered up his emotions very well without revealing any clues.

This time it was a treasure.Ren Yu thought, within 10 months, the GMV of the website was 130 billion yuan!

Although this number includes canceled orders, unpaid orders, returned orders, rejected orders...

After deducting these "water bills", [-]% to [-]% of the actual turnover should still be there.

This is also remarkable, and it can be regarded as a dark horse in e-commerce.

As for Pinduoduo's loss of nearly 3 million yuan, he selectively ignored it.

With a transaction volume of tens of billions, the loss is less than 3 million yuan, which is very economical, isn’t it?

"That's fine, it's up to your $33 billion." Speaking of this, Ren Yu paused, pretending to be embarrassed and said: "However, Yida, you have to sign a supplementary agreement for me to guarantee that the future Annual GMV of 360 billion.”

"That's unnecessary! We have already reached a monthly GMV of 30 billion. Even if we stay where we are in the next year, we can still achieve the goal of 360 billion."

Sun Yutong knew that Ren Yu had started playing tricks, and worried that Zhang Yida was young and energetic, so he agreed.

Although he also believes that it is not difficult to complete the GMV of 360 billion, but there is no absolute in everything, so it is not worth taking this risk.

Ren Yu also thinks the same way, there are contingencies in everything, what if Pinduoduo's performance declines in the next year?
If Pinduoduo went to the street, he would not dare to take the responsibility.

Although Pony entrusted him with carte blanche to be responsible for the financing of Pinduoduo, he was given a lot of authority.

But he also has to leave a way out for himself, it is best to let Zhang Yida sign a "coverage agreement".

Ren Yuxuan glanced at Sun Yutong, knowing that this is an old Jianghu, so it is not easy to fool him, and explained: "After all, it is a big deal of several hundred million, it is better to be cautious."

"How about this, after one year, re-evaluate according to the GMV that Pinduoduo will actually achieve in the next year.

If it reaches 200 billion, it will be valued at 120 billion; if it reaches 400 billion, it will be valued at 240 billion. "

Zhang Yida's plan won Sun Yutong's favor, and he agreed: "This method is good, fair and just, and no one will suffer."

Ren Yu scolded his mother in his heart. According to this method, Penguin is very likely to miss the growth bonus of Pinduoduo for nearly a year.

He shook his head and said, "This won't work, it's too straightforward. It's too bad for investors."

"Mr. Ren, what you said is wrong. If you do it according to what you mean, then we will have to work hard and suffer.

In fact, I think Yida's method is very good, and it is fair to everyone. "

Sun Yutong also understood what Zhang Yida meant, that he was digging holes for the penguins, so he also worked hard to help.

Ren Yu actually thinks so, sign a supplementary agreement, if the GMV is less than 360 billion, Pinduoduo will revaluate, and Zhang Yida will transfer the equity to make compensation, or return a part of the investment;
As for the GMV higher than 360 billion, it is an investment bonus.

The plan proposed by Zhang Yida completely wiped out Penguin's investment bonus, which is absolutely unacceptable.

Ren Yu decided to put this topic aside for the time being, and began to ask Zhang Yida: "You said Pinduoduo wants to enter WeChat Zodiac?"

"Yes, that's what it means." Zhang Yida joked again, "But it has to be at a reasonable price, it's too expensive and we can't afford this VIP service."

Ren Yu nodded thoughtfully, and carefully observed Zhang Yida's facial expression.

There is no doubt that Pinduoduo relies heavily on WeChat.Zhang Yida said that he couldn't afford to enjoy the Zodiac Grid on WeChat, but in fact he was probably too greedy.

How could he miss such a good opportunity to rip off?
"Yida, in order to open up the Zodiac grid, Pony persuaded Zhang Dalong with a lot of words.

With the continuous improvement of WeChat users, the commercial value of WeChat has also continued to rise.

Ruixiang and Huimin Bike cooperated early and got a big deal.

Now our external quotation is 2 million US dollars a year. "

Zhang Yida was dumbfounded, and asked in a daze, "No way! You're just sitting on the ground and raising the price!"

"What's the price of sitting on the ground? How ugly is this! We call it reshaping the intrinsic value of the enterprise."

Zhang Yida knew that he was being passive now, so he pretended to be very calm and said, "Then Pinduoduo can't afford this kind of luxury service. Let's talk about the cash investment!"

Ren Yu looked at Zhang Yida suspiciously, and gave up so lightly?I'm afraid that retreating is advancing!
Okay, play with me, then play with you.

"Yida, let me tell you clearly! If we don't sign a supplementary agreement, it will be difficult for us to talk."

After Ren Yu put down such a cruel sentence, he said: "Amoy Goods also contacted us.

However, we ignored them.They are a bit small in size, and Pinduoduo is still our preferred investment target.

Besides, Penguin has always been happy to cooperate with you.Therefore, Penguin is more willing to support Pinduoduo. "

Zhang Yida was convinced, and resorted to all sorts of tricks including conspiracy and threats.

There is no way, Pinduoduo is a social e-commerce company, lacking traffic, and can only rely on the breath of others.

In particular, Penguin said that it will support Pinduoduo, which is really grasping the fate of Pinduoduo.

Looking at the silent Zhang Yida, Ren Yu also knew that it was almost time, and said with a smile: "After the cooperation agreement is reached, Penguin will give you a big gift, and all good products will be banned."

This is a stick and a sweet date.Needless to say, it really worked. Zhang Yida began to seriously consider the gains and losses after hearing this.

Banning good products will undoubtedly save a big enemy.Including the market, market value, Pinduoduo is expected to reach or even surpass the height of Pinduoduo in the previous life.

And Pinhaohuo has been chasing behind, and Pinduoduo's cake will undoubtedly be cut off.

Is it a more trouble-free and efficient way to give this piece of cake to penguins?

Zhang Yida thought for a long time before he said: "A supplementary agreement must be added. The GMV exceeds 500 billion yuan, and the valuation must be readjusted."

"540 billion, just enough to make up a 50% increase, beyond this goal, to give the management a certain shareholding incentive.

Don’t mention the reconstruction of valuation. Penguin is doing investment, not charity. "

Zhang Yida wasn't angry when he heard this, because the initiative is now in his hands.He also said: "The price of WeChat Zodiac must be cheaper, let's use the 5000 million US dollars a year at Huimin's time!"

"5 years, 3 million US dollars!"

2 million US dollars a year is a sky-high asking price to pay back the money. Since Zhang Yida has made some concessions on the supplementary agreement, he will not be cheating.

Zhang Yida nodded and agreed. Compared with Huimin Bicycle's cooperation price increased by 1000 million US dollars half a year ago, it is not unacceptable.

Soon, Pinduoduo and Penguin signed a B-round financing agreement.

Penguin paid US$3 million for the WeChat Zodiac traffic portal, and another US$6 million in cash, for a total investment of US$9 million, acquiring a 21.43% stake in Pinduoduo.

另外，还签署了一份补充协议，要求拼哆哆在2016年2月5日至2017年2月4日，达到360亿元GMV。

If it is not reached, Pinduoduo needs to recalculate the valuation based on the actual GMV achieved;
Reaching 360 billion just matches the pre-investment valuation of 33 billion US dollars;
With more than 540 billion GMV, Penguin transferred nearly 6000 million US dollars, or 1.43% of the shares, to Pinduoduo management for free as an equity incentive.

Zhang Yida conspired with Ren Yu again about how to deal with Pinhaohuo, the latter nodded repeatedly and gave Zhang Yida a thumbs up, that's ruthless!
Penguin has become an investor in Pinduoduo. From the perspective of maximizing profits, it is also necessary to curb the development of Pinduoduo.

Ren Yu has no pressure to do these things. He, who has been in charge of the Penguin game, made opponents much more ruthless than this.

As the New Year is approaching, Pinduoduo’s due diligence work will be postponed. It is expected that various procedures such as due diligence will be completed after the next year, and the delivery of investment funds will also be postponed.

These details are handed over to the lower-level departments of the two parties to be responsible for the matchmaking. Zhang Yida and Ren Yu are only responsible for negotiating the general framework agreement.

After sending Ren Yu away, Zhang Yida looked at Sun Yutong who was hesitant to speak, and asked with a smile, "What's the matter?"

"It's nothing!" Sun Yutong waved his hand and sighed again: "I just feel that I promised too readily. In fact, I think I can endure it a little longer."

"Penguins can take risks and wait. We can't afford to wait! My biggest fear is that they have invested in a better product."

Zhang Yida's worries are not unreasonable. Social e-commerce is naturally limited by social software, so he can only compromise with Penguin.

Sun Yutong thought about it, and this is indeed the truth.It’s okay to lose part of the profits, the key is to completely tie the penguin to Pinduoduo’s chariot.

It's hard to say who took advantage of whom, maybe it's more appropriate to call each one what he needs.

(End of this chapter)