Winning the new financial era

Chapter 191 Settling the War
"Huimin Travel Group currently owns three sub-brands: Huimin Bicycle, BTP.bike, and Green Scooter.

The business spans the two states of North America and Asia, and the three major countries of China, the United States and New Zealand.

The purpose of this financing: Part of it is to complete the sinking layout of the third- and fourth-tier cities of domestic shared bicycles, and continue to consolidate the leading position in the market;
Part of it is to accelerate the occupation of the Southeast Asian market and the market expansion in North America..."

In the meeting room of Huimin Travel Group, Zhang Yida began to advocate the global strategic layout of Huimin Travel Group to investors.

As time entered August, the North American operation center of Green Scooter also pulled up the shelf and is vigorously engaged in research and development.

Domestic shared bicycles are in full swing, and foreign countries have to continue to invest in research and development.

Seeing that the funds in the account were getting less and less day by day, Zhang Yida upgraded Huimin Bicycle to Huimin Travel Group, and launched a B+ round of financing at the same time.

"In your vision, Mr. Zhang, what kind of state will Huimin Travel Group be in three or five years from now?"

The questioner was a representative of GIC Investment, Singapore's sovereign wealth fund.

"In three to five years, Huimin Travel Group will become the largest short-distance transportation group in the world.

In Asia, we mainly operate shared bicycles.In Europe and America, we mainly operate shared electric scooters.

There are at least 2 million users in China, and at least 2 million users overseas.

The annual revenue reaches more than 70 billion US dollars, and the annual net profit reaches more than 21 billion US dollars..."

Anyway, the question is three to five years later, Zhang Yida began to paint a bright future.

"Is there any supporting material or basis for this development goal?"

A representative of Softbank Capital Investment asked a question.

"Yes!" Zhang Yida nodded solemnly, turned on the PPT projector in the meeting room, directly pulled out several data reports, and said:

"At present, Huimin Bike's domestic registered users have exceeded 2000 million, and the number is growing at a rate of 300 million per month.

Without continuing to release bicycles, it is estimated that the goal of 60 million registered users will be completed in 2 months.

But in fact, with the increase in the number of bicycles launched, the growth of this user will definitely accelerate. In less than five years, maybe two or three years, the goal of 2 million will be reached.

China only accounts for one-fifth of the world's population, and its overseas market is four times that of China.

We can achieve 2 million users in China, and I think we can definitely achieve this goal overseas, or even surpass it.

After nearly a year of operational demonstration, we have basically determined the two pillar revenues of short-distance shared travel - cycling revenue and advertising revenue.

When the domestic business reaches 2 million registered users, I think the daily ride orders will not be less than 4000 million.

The average customer unit price is 1 yuan per order, the daily revenue will reach 1 million yuan, and the annual revenue will reach 4000 billion yuan, equivalent to nearly 146 billion U.S. dollars.

For foreign business orders, we count 2000 million orders per day, and a single order is 0.5 US dollars. The daily income will be 1000 million US dollars, and the annual income will be more than 36 billion US dollars.

Adding the two together, the total domestic and foreign cycling business revenue is 60 billion US dollars.

Our domestic advertising business currently has a monthly income of nearly 800 million US dollars and an annual income of nearly 1 million US dollars.

With the simultaneous improvement of domestic and foreign businesses, it will not be too difficult to reach more than US$10 billion in advertising revenue.

According to our internal calculations, after the user subsidy is stopped and business development enters a stable state, the operating profit margin will reach more than 30%.

The annual revenue is 70 billion US dollars, and the net profit will be more than 21 billion US dollars. "

A group of investment representatives whispered to each other and exchanged views with each other.

Zhang Yida's "pie" is too big, and most investors don't believe this data.

Fold in half, fold in half again, multiply the data calculated by Zhang Yida by a quarter, and there is a high probability that it can be achieved.

For example: 5000 million domestic users, 5000 million foreign users, annual revenue of 17.5 billion US dollars, and annual profit of 5.25 million US dollars.

There is also a price-earnings ratio of 20-30 times, a proper market value of tens of billions.

If Zhang Yida knew what they were thinking, he would definitely scoff at them.

In the previous life of fof, after 28 months of operation, the single-day orders exceeded 3200 million.

As long as Huimin Bicycle can get rid of Bimo and completely occupy the vast majority of the market share, there is still hope for a stable daily order of 4000 million.

It is the overseas market that makes Zhang Yida really uncertain. After all, the product has not yet been launched, and there is no reference basis, so it is hard to say what kind of development it will be.

No, the investment representative of Silver Lake Capital of the United States spoke:

"Mr. Zhang, there is no doubt that Huimin Bicycle is the king of China's short-distance travel market.

But in the United States on the other side of the ocean, the cultural beliefs and business environment are completely different.

The Green scooter has not yet launched a finished product. Whether it will be successful in the United States is still full of unknowns. "

"Yes, we at Warburg Pincus also agree with what the representative of Silver Lake Capital Investment said.

We can only make a valuation based on the existing domestic business of Yimin Travel Group, and will not give any other premium. "

Smith, the representative of Warburg Pincus, spoke firmly, speaking in a non-negotiable tone.

Warburg Pincus is also an American private equity fund company. Zhang Yida guessed that the two foreigners colluded to lower the price together.

"Then what do you think is the valuation of Yimin Travel?"

Although financing is imminent, Zhang Yida still looks calm and composed.

As the co-chairman of a company valued at US$60 billion and a company with a market value of US$[-] billion, he has proven his ability many times in the entrepreneurial circle.

In terms of valuation, it is absolutely impossible for him to make too much concessions.

Investing is investing in people, and he knows that he is already a piece of cake.

To put it bluntly, he alone is worth hundreds of millions of dollars.

Just so confident!
"The valuation of Huimin Travel Group's last round of financing was US$18 billion! We are willing to give a pre-money valuation of US$20 billion."

Warburg Pincus Investment representative Smith just said such a sentence, and saw a few cold eyes cast on him, with mockery and displeasure in the eyes.

Shen Beipeng, Xu Xiaoming and other old shareholders will definitely quit!The last round of financing was US$18 billion. Five months later, the valuation has increased by US$5 million?
Who are you fooling?

"Mr. Smith, Huimin Travel Group has always been a fast-growing company.

From angel rounds to A rounds, A+ rounds, and B rounds, the valuation of each round of financing has multiplied several times.

20 billion US dollars is absolutely not worthy of Yimin Travel's current worth. "

Shen Beipeng spoke. From his point of view, the valuation of Huimin Travel Group is of course the higher the better!
To maintain valuation is to safeguard one's own interests.

"However, it is an indisputable fact that the competition in the bike-sharing market is becoming more and more fierce, and Yimin Travel Group is losing more and more money.

As far as I know, an operation strategy of free riding has emerged in your country's shared bicycle market!
Millions of bicycles, free to ride.

Hehe, is this a commercial project or a public welfare project? "

Smith sneered unceasingly. He was well prepared for this financing negotiation. He collected a lot of various materials, all of which were used to lower the price of trips with Yimin.

"The national conditions are different, changing the market for free is a typical Internet game in our country.

Didn't Ahri beat eaby for free?Can you say it was unsuccessful?

If you want to take it, you must first give it!

This is a famous quote from an ancient book "Tao Te Ching" in my country more than 2000 years ago.

What do you mean?
Let me explain to some foreign friends.

If you want to seize something, you have to pay the price to let the other party relax their vigilance, and then find an opportunity to seize it. "

Zhang Yida made up lessons for several foreigners, who were taken aback for a while.

"Mr. Smith, if you sincerely want to invest in Huimin travel, you should show your sincerity.

Instead of being picky here.

As the youngest CEO of Nasdaq, Mr. Zhang Yida is also somewhat famous in your Wall Street.

His career success comes from his hard work, but also from his forward-looking strategic vision.

In addition to Warburg Pincus, I think other Wall Street capitals should be interested in Yimin Travel. "

Xu Xiaoming came out to help, making Smith's face turn blue, and he remained silent there.

"With a pre-money valuation of $30 billion, if you believe me, you can sign now.

If you don't have enough confidence in me or Yimin to travel, I think there is no need to talk about it any more!
It's a crime to waste time. "

Zhang Yida said this not only to Smith, but also to several other investors.

Time is precious!If the negotiation fails, change homes as soon as possible.

Several investors stared at each other, all struggling.

If you are not interested in Huimin travel, then everyone will not come here today.

Yimin Travel, just one year after its establishment, its valuation soared to 30 billion US dollars.

They are afraid that the bubble in the middle is too big!

However, there is a case of "Yimin Wangjin was successfully listed after 21 months of operation", and the investors felt a little more confident.

"Mr. Zhang, Softbank agrees to your offer. But we have two requirements. The first is that we lead this round of financing, and the second is to add a VAM agreement."

The representative of Softbank Investment did not know whether he had consulted the head of the headquarters, and was the first to jump out to break the calm atmosphere.

"What gambling agreement?"

Zhang Yida doesn't have to worry about the debts now, and has signed one after another gambling agreement.

But he is not afraid, and has the confidence to complete the goal.

"In one year, China's domestic bike-sharing war will be settled."

The words of the representative of Softbank Investment are very interesting. Basically, everyone here has heard another meaning hidden in it-to completely consolidate the industry's dominance and digest the valuation bubble.

"Settling the war? What are the specific standards?"

Zhang Yida continued to ask, he must make a clear distinction.If he is allowed to monopolize the domestic market 100%, it would be a dream and a fantasy.

"Occupy 80% of the market share in the industry. Or let the Chinese business of Huimin travel achieve revenue balance.

One of the two conditions must be satisfied. "

After hearing the condition, Zhang Yida didn't reply in a hurry, but frowned and thought about it.

(End of this chapter)