Wish.com officially filed to launch its initial public offering (IPO) on Friday as it reported skyrocketing revenues of $1.7 billion.
The ecommerce platform revealed its sales figures for the first nine months of 2020 in a bid to woo investors as it prepares to launch on the New York Stock exchange before the end of the year.
Wish said that revenues grew a third during its most recent quarter, following a whopping 67 per cent sales growth in the previous three-month period.
However, this followed an eight per cent dive in sales during the first quarter of 2020 after “severe manufacturing and supply disruptions” due to the pandemic ground sales to a halt.
This saw the online marketplace, which sells discount items almost exclusively from China, flog more than 640 million items in the 12 months to September, seeing revenues hit $1.7 billion in the first nine months of 2020.
Despite this, Wish’s net losses outpaced its revenue growth, rising from $5 million in the same period last year to $176 million.
The company, which was founded by two former Google employees in 2010, is aiming to raise between $25 billion and $30 billion when it goes public, according to sources familiar with the matter.
It has also sought to quell fears from investors that it is too reliant on stock from China, which puts the company at risk from growing trade tensions between China and the rest of the world, especially the US.
“Further escalation of trade tensions between the United States and its trading partners, especially China, could result in long-term changes to global trade, including retaliatory trade restrictions that restrict the international flow of products,” Wish said in its prospectus.
According to Wish, it has taken major steps to diversify its supply chain and has seen merchants selling on its platform from the US rise by 268 per cent since 2019.
While Wish doesn’t disclose the percentage of sellers currently residing in China, some estimates have put this figure as high as 94 per cent.