Ecommerce Market Wish filed its IPO prospectus with the Securities and Exchange Commission on Friday, joining a number of technology companies that are set to debut before the end of the year.
Wish’s parent company, ContextLogic, plans to list its shares on Nasdaq under the symbol WISH. The filing provides the first look at Wish’s finances after the company confidentially filed to be released in August.
Founded in 2010, Wish is an online marketplace featuring a range of discounted items, from inexpensive home goods and clothing to electronics and toys. Compared to Amazon, Wish is targeted at shoppers of “any socioeconomic status”
“We built Wish to serve those consumers who prefer affordable brand and convenience and who are underserved by traditional e-commerce platform,” says Filing.
In general, the company shows moderate growth without sky-high losses. Wish reported $ 1.75 billion. In revenue for the nine months ended September 30th. That’s an increase from $ 1.33 billion. In the same period last year, a growth rate of 32%. However, revenue increased by only 10% between 2018 and 2019.
Wish shows slower growth from a much smaller base than retail and e-commerce giants like Amazon, Target and Walmart. In the third quarter, Amazon reported first-party sales growth of 38% year-over-year, while sales from third-party retailers increased by 55%. Target and Walmart, both of which have received a major boost from pandemic-driven online shopping, saw their third-quarter digital sales rise 155% and 79%, respectively, from a year ago.
While growth has been pretty dull for a startup, its bottom line has been fairly stable – it lost $ 247 million in 2017, $ 208 million in 2018 and $ 136 million last year. In the first nine months of 2020, it lost $ 176 million.
Wish said it now counts more than 100 million monthly active users in over 100 countries, compared to the previously reported number of 70 million monthly active users. More than 500,000 merchants are signed up to sell on the platform, and it has grown its catalog to 150 million items, Wish said in filing. Most of its merchants are based in China, but it added more vendors from the US to its platform in 2019.
The desire becomes public at a time when e-commerce has gotten a shot in the arm from the coronavirus pandemic. Like many retailers, Wish said it was experiencing longer delivery times, supply chain disruptions and the loss of some merchants on its platform at the height of the pandemic. However, it said it also benefited from greater mobile consumption and less competition from brick and mortar retail due to locking.
Airbnb, DoorDash, Roblox and online lender Affirm have also filed for publication in the past week, taking advantage of a rally following US stock picks and investor demand for high-tech names. The companies are trying to hit the market in the period between Thanksgiving and Christmas, people who knew their plans told CNBC last week.
– CNBC’s Ari Levy contributed to this report.