Sunday, 2024 April 14

IPO | Pinduoduo sued in NY for counterfeit goods before IPO

Pinduoduo, one of China’s hottest e-commerce apps, is being accused in a federal court in New York over alleged counterfeit listings by the U.S. diaper maker Daddy’s Choice, right before the meteoric Chinese e-commerce startup, a Facebook+Groupon mashup, is preparing for its Nasdaq IPO.

The company had previously cracked down on counterfeit goods on its platform, punishing over 200 stores in June, but that also resulted in a protest at its Shanghai headquarters by some of the merchants whose stores were shut down on its platform. Pinduoduo also said in regulatory filings to the SEC that Chinese authorities had in January told the company to strengthen supervision over claims of copyright infringement.

Pinduoduo’s app allows for users to group together to get more discount from merchants. Backed by Tencent Holdings and Sequoia Capital, the Shanghai-based firm has seen a meteoric rise in the last few years, making it the second e-commerce platform provider after Alibaba with 344 million active buyers last year, surpassing in the process. It is trying to raise up to US$1.63 billion through American Depositary Shares on Nasdaq.

Source: The New York Times

Editor: Ben Jiang

36Kr Global Writers
36Kr Global Writers
The tech ecosystem is roaring. Unicorns valued at billions of dollars have emerged worldwide, while venture capital and strategic investors are constantly on the lookout for the next big thing. 36Kr Global is committed to establishing ties between global stakeholders and providing the most vital information about China’s tech scene and capital markets.

Related Read