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$100M+

Active monthly users

1.8m

Items sold daily

100+

Countries 

14.07B+

Valuation

IPO INFORMATION

With 100 million active monthly users already, Wish aims to attract the next billion mobile e-commerce shoppers with a focus on affordability and lower-income customers. ContextLogic Inc, the parent company to mobile e-commerce platform Wish, has filed for an initial public offering amid a massive shift to online shopping during COVID-19.

ContextLogic aims to raise up to $1.10 billion. Wish plans to list 46 million shares at a price between $22 and $24.

With 586.4 million Class A and Class B shares expected to be outstanding after the IPO, the pricing could value the company at up to $14.07 billion. 

Lead underwriters include Goldman Sachs & Co., JPMorgan and BofA Securities.

With 100 million monthly active users in more than 100 countries, WISH says it is the most downloaded shopping app, and aims to bring its users a wide selection of affordable products. Wish has more than 500,000 merchants selling 150 million items to customers. About 1.8 million items are sold daily.

 

ContextLogic was incorporated in Delaware in 2010 and is based in San Francisco. It will trade on the Nasdaq with the symbol “WISH.”

ContextLogic’s chief executive and chairperson is also its founder, 39-year-old Peter Szulczewski. Prior to launching the company, he held a number positions at Google Inc. GOOG, +0.36% GOOGL, +0.40% Others among the executive leadership have also previously held positions at technology companies, including Chief Financial Officer Rajat Bahri, who was previously at Jasper Technologies, and General Counsel Devang Shah, who worked at Zynga Inc. ZNGA, +0.35%

As of Sept. 30, ContextLogic had 828 full-time employees across eight companies, 417 of which are in research and development or related activities.

The mobile commerce market was $2.1 trillion in 2019 and is projected to reach $4.5 trillion by 2024, according to the Wish prospectus. As consumers make the shift to e-commerce during the coronavirus pandemic, experts like Adobe Inc. ADBE, -0.20% have seen mobile sales leap during the holiday season.

More than 90% of the user activity and purchases on the Wish platform are on the mobile app.

With 100 million monthly active users in more than 100 countries, Wish says it is the most downloaded shopping app, and aims to bring its users a wide selection of affordable products. 

WISH STATISTICS

COMPANY / MANAGEMENT INFO


ContextLogic’s chief executive and chairperson is also its founder, 39-year-old Peter Szulczewski. Prior to launching the company, he held a number positions at Google Inc. GOOG, +0.36% GOOGL, +0.40% Others among the executive leadership have also previously held positions at technology companies, including Chief Financial Officer Rajat Bahri, who was previously at Jasper Technologies, and General Counsel Devang Shah, who worked at Zynga Inc. ZNGA, +0.35% As of Sept. 30, ContextLogic had 828 full-time employees across eight companies, 417 of which are in research and development or related activities.




TOP COMPETITORS


Major competitive or other industry participants include:

  • Amazon (AMZN)
  • Alibaba (BABA)
  • Shopify (SHOP)
  • Walmart (WMT)
  • Target (TGT)
  • JD.com (JD)
  • Dollar General
  • TJ Maxx
  • Others




INVESTORS


Wish has received at least $1.5 billion from investors including:

  • DST Global
  • The Founders Fund
  • Formation8 Partners
  • GGV Capital
  • Republic Technologies




BANK SELECTED FOR IPO


Lead underwriters include: Goldman Sachs & Co. JPMorgan BofA Securities




WISH OVERVIEW


Launch date4 July 2010 HQSan Francisco, California People Piotr Szulczewski (CEO), Rajat Bahri (CFO), Danny Zhang (co-founder) Business type Private (IPO expected in 2021) Industry Ecommerce Wish Revenue 2015 $0.3 billion 2016 $0.7 billion 2017 $1.0 billion 2018 $1.9 billion 2019 $2.3 billion Source: Forbes, (2) Wish Profit 2019($100 million)





WHAT MAKES WISH DIFFERENT

 

E-commerce has traditionally focused on affluent shoppers. However, growth will come from consumers on the lower end of the economic spectrum, Wish said, particularly among the shoppers from emerging economies across Africa, Latin America and Eastern Europe, where they approximate the average household income at $18,000 annually. Excluding China and India, the company estimates that there are more than 1 billion households globally with income of less than $75,000 a year.

 

“We believe that the next billion e-commerce customers will be these value-conscious consumers,” the prospectus said.

Wish revenue has grown from $1.1 billion in 2017 to $1.9 billion in 2019. For the first nine months of 2020, sales totaled $1.7 billion. Marketplace services make up the majority of revenue (93%). The company also offers an advertising tool, ProductBoost, which allows merchants to promote their listings on user feeds.

Anyone that has used Wish will know deals are part of the app’s DNA. Some items are on sale for a supposed 98 percent of the original value, although it’s hard to verify if it was ever on Wish for the original price. 

Wish also provides a lot of freebies and coupons to users, often offering an item for free as long as the customer pays shipping. Users are entered into prize draws and daily deals. Over 300 million items are available on the Wish store, the majority of which are from China.

 

The app lends itself well to scrolling, like a social network, far different to Amazon where the customer usually searches for a specific item. 

E-COMMERCE GIANTS

 

“The largest e-commerce companies in the world were created on desktop, and their consumer experiences are predominantly search-driven rather than discovery-based,” the Wish prospectus said. Among the biggest e-commerce companies are Amazon.com Inc. AMZN, +0.48%, Shopify Inc. SHOP, -0.89% and Alibaba Group Holding Ltd. BABA, -0.12%, all companies that Wish identifies as competition. Wish also says it’s competing with discount retailers like Walmart Inc. WMT, -0.03% and Dollar General Inc. DG, +0.36% and off-price retailers like TJX Cos. TJX, -0.69%.

“Our platform is designed to make it easy to navigate a vast selection of products when users do not have a specific item or brand in mind,” the prospectus said. “Over 70% of the sales on our platform do not involve a search query and instead come from personalized browsing.”

Wish also uses social features, gaming techniques and interactive tools to make the experience entertaining. The company said Wish users spent an average of more than nine minutes per day on the platform during the 12 months ending Sept. 30.

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