58 Home, the online-to-offline on-demand local services firm owned by classifieds giant 58.com (NYSE: WUBA), is close to finalizing fundraising for an initial public offering in the U.S., according to Bloomberg. The IPO could value the online services platform at as much as $2 billion U.S.
The subsidiary, also known as 58 Daojia, is currently wrapping up a pre-IPO financing round at a valuation of more than $1 billion U.S. Once that’s done, 58 Home intends to prepare for an IPO in which it will seek a valuation of between $1.5 billion and $2 billion U.S. Both 58 Home nor parent company 58.com declined to comment.
58 Home has pursued aggressive expansion in China in recent years. The mobile platform has made inroads in local logistics and ride-hailing through its KuaiGou Daojia platform. The service offers an on-demand marketplace for goods delivery vans, home moving operators and large goods haulage within several dozen major cities. KuaiGou, which is available as an app and a mini-program, already has over 100 million users, according to an interview with 58.com chief strategic officer and 58 Daojia CEO Xiaohua Chen in 36kr.com (in Mandarin). The 58.com subsidiary has also been branching out into group buying.
Chen has served as CEO of 58 Home since May 2014. Last April, the company brought Li Zijian on board as vice president. He was tasked with overseeing the company’s operations.
58 Home is one of the leading local services firms in China, connecting users with services from flower delivery to home-cleaning. Backed by Tencent Holdings, it’s vying for market share however against deep-pocketed rivals like Meituan Dianping.
58.com had its last private funding round in 2015, when it raised $300 million U.S. from investors including Alibaba, KKR and Ping An Group. 58.com holds 68.8% of the company’s equity interest but doesn’t consolidate the unit’s financials in its own results, according to its annual filing.