Meituan Dianping's January-April losses nearly triples ahead of mega IPO

The company booked $26.2b loss in the first four months of 2018.

Reuters reports that Chinese on-demand food delivery service firm Meituan Dianping registered a positive revenue performance in the first four months of 2018 at $18.16b (CNY15.8b) but also booked higher losses ahead of its widely anticipated float in Hong Kong. 

Also read: Has Meituan lured Tencent to its mega $4b IPO?

Net loss from January to April was almost three times bigger at $26.2b (CNY22.8b) as the company spends heavily to sharpen its competitive edge against Alibaba-backed rivals like Ele.me and Baidu Waimai.

This adds to another $22.79b (US$2.9b) loss booked in 2017 as the company stepped up its market and research spending whilst also reflecting adjustments related to share-based compensation ahead of its listing.

Meituan is not alone in the unprofitability ahead of float as smartphone maker Xiaomi also bled $8.58b in Q1 ahead of its IPO. The company is reportedly seeking to raise as much as US$4b before an overallotment option, and is valuing itself at up to $431.69b (US$55b).

Here’s more from Reuters:

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