Poundland's capital model

PuDuo's capital model includes private equity financing, bond issuance and bank loans.

1, private equity financing

Private equity financing is one of the earliest financing methods used by Pinduoduo. In the early stage of the venture, Pinduoduo obtained funds by selling equity to venture capital organizations and private equity funds. Through private equity financing, Pinduoduo obtained a large amount of capital, laying the foundation for its subsequent development.

2, bond issuance

In addition to private equity financing, Pinduoduo also used bond issuance to obtain funds. Pinduoduo attracted more investors by issuing bonds and brought stable cash flow to the company. This financing method has the advantages of high flexibility and low cost of capital, which provides Pinduoduo with more financial support.

3, bank loans

PuDuo also obtained some funds through bank loans. As a company with scale and potential, Pinduoduo enjoys high credibility and credit rating, so it is able to obtain bank loan support. Bank loans provide Pinduoduo with a flexible source of funding, helping the company better meet its business development needs.

The advantages of Pinduoduo

1, price-friendly

Pinduoduo's price positioning is friendly to meet the needs of mass consumption, thus attracting a large number of consumers.

2, the group mode

The group mode can attract consumers and increase the price to achieve the sales target, through the way of the group, the consumer's willingness to buy is greatly improved, thus increasing the conversion rate. In addition, group activities can also increase the exposure of the store, attract more users to participate, and further expand sales.

3, conducive to the cultivation of user habits

Jinduoduo by subsidizing the user habits, in the early stage of the market to achieve better results, through the low price to attract users, and cultivate the user's purchasing habits. This model does not work in e-commerce, because the subsidies can not continue to attract users, users turn to other low-priced products.