Wish, a US-based mobile commerce platform backed by conglomerate Legend Holdings, has entered talks with investors including growth equity firm General Atlantic to raise $300m in funding, The Information reported on Monday.
Other potential backers have also joined the discussions, though their identity was not revealed. Wish is targeting an $11bn pre-money valuation for the round.
Founded in 2011, Wish runs an app-based online marketplace that allows primarily China-based merchants to sell inexpensive goods ranging from shoes to smartwatches directly to consumers in Europe and the US.
The company’s offering also includes an online outlet with products from established brands, sold at a discount to the recommended retail price. Wish has not revealed how it intends to spend the funding but is reportedly suffering annual losses of $190m against revenues of $1.9bn as it pursues heavy marketing efforts.
Wish was in the process of raising $250m in September 2017, and The Information’s latest report suggested the round did close, at a valuation of $8.5bn. Investment manager Wellington Asset Management reportedly contributed to the round alongside unnamed mutual funds and existing backers.
Singaporean government-owned investment firm Temasek had led Wish’s $500m series F round in 2016, before Everbright-IDG Industrial Fund, DST Global, Third Point Ventures, Founders Fund and undisclosed international institutional investors were later revealed to have participated, in May 2017.
E-commerce firm JD.com reportedly invested $50m in a $500m series D round for the company in 2015 that was led by DST and brought its total funding at that point to $575m, though JD.com is not listed as an investor on Wish’s website.
Legend Capital, the venture capital firm established by Legend Holdings, participated in Wish’s $50m series C round in 2014 together with GGV Capital, Formation 8, angel investor Jerry Yang and unidentified additional backers.
