Wish, a US-based mobile commerce company backed by conglomerate Legend Holdings, is raising $500m in capital from a consortium led by Singaporean state-owned investment firm Temasek, Recode reported yesterday.
Founded in 2011, Wish operates several mobile commerce apps that sell a broad range of low-priced, unbranded products which are sourced and shipped directly from China-based manufacturers.
The company has reportedly attracted the majority of the cash already but is still in discussions with a range of unnamed investors. The round values Wish between $3.5bn and $5bn.
Prospective participants in the latest round have secured special liquidation preferences, according to a regulatory filing, meaning they would be first in line to recoup their investment in the case of a disappointing acquisition.
The same securities filing also reveals that preferred shares will only convert to common shares in an initial public offering if Wish raises a minimum of $500m at a $6bn valuation.
The filing does not reveal how the cash will be used but the company has been heavily investing in warehouse spaces recently in order to store popular items in the US and reduce delivery times.
Wish has so far received more than $575m in total funding, raising $500m at a $3.5bn valuation in a June 2015 series D round led by investment firm DST Global that reportedly included e-commerce company JD.com.
Legend Capital, the corporate venturing arm of conglomerate Legend Holdings, took part in a $50m series C round in 2014 that also featured GGV Capital, Formation 8, angel investor Jerry Yang and other unnamed backers.
– The original version of this article appeared on our sister site, Global Government Venturing