Queuing up for listing! The cross-border IPO market is still hot

In the cross-border track in 2023, which categories and companies are still favored by capital?

SHEIN made a strong statement, and a group of investors flocked to it. In 2021, SHEIN's valuation reached a peak of 100 billion US dollars, and the cross-border track also ushered in the highest financing point, with a total financing amount of more than 20 billion yuan. At that time, cross-border e-commerce was in the limelight in the capital market.

Although some tracks have turned from hot to cold in 2023, the heat of listing and investment and financing ecology has declined, and some investment institutions have withdrawn one after another, there are still some categories and companies that are still favored by capital, have obtained financing, and have even embarked on the road to IPO.

According to incomplete statistics from Ennet, in 2023, a total of 6 cross-border sellers have successfully listed, 10 are in the process of IPO, and some companies are ready to go public. Among these companies, there are many target poles in the categories of home furnishing, portable energy storage, 3C, power tools, and outdoor.

Investors all want to bring out the next SHEIN or Anker Innovations, but not everyone can easily become the next winner. However, the investment categories and brands of investors can also become a touchstone for sellers to expand their product categories.

In 2023, which areas will capital focus on the most? Which companies and brands have received financing? This article mentions some of the brands that have received financing in the cross-border track, involving multiple categories such as fashion, smart robots, E-Bike, and smart pet products. I hope it will be helpful to sellers who will further cultivate the cross-border track in the future.

In 2023, a number of cross-border sellers were successfully listed

As the saying goes: "There are 360 ​​professions, and every profession has its own top talent." On the road of selling goods overseas, many cross-border players have also carved out their own niche in their respective fields. Since the development of cross-border e-commerce, more than a dozen major sellers have successfully landed on the A-share market, from Global Easybuy, which was the first to go public through a backdoor listing, to Youkeshu, Tongtuo, and Zebao, which were listed and acquired, and to Anker Innovations, which went public in recent years.

These industry leaders have long been regarded as benchmarks for cross-border e-commerce. Following them, a group of sellers are following their footsteps and making great strides overseas while also striving for IPOs. In 2023, in addition to the successful bell ringing of two comprehensive sellers, Saiwei Times and Santai Shares, many category sellers are also striving for IPOs.

Home category

As one of the hottest tracks, the home furnishing track has enough room for growth. The overseas online market alone is worth tens of billions of dollars. It is called the seed category of the cross-border track, but at the same time it is also a very competitive category. It is not easy to break out of the market that has been divided up by industry giants.

In the home furnishing category, there is one company, Zhiou Technology, which successfully went public in 2023, and three other companies, Taili Technology, Jessia, and Mingyuan Creative, are in the process of IPO.

On June 21, Zhiou Home Furnishing Technology Co., Ltd., founded in 2010, was successfully listed on the A-share Growth Enterprise Market, becoming the "first stock" of Henan's cross-border e-commerce. It currently focuses on multiple categories such as furniture, home furnishings, gardens, and pets, and owns three major self-owned brands: SONGMICS, VASAGLE, and FEANDREA.

As one of the earliest pioneers, Zhiou Technology has a track record of success. From the start of financing in 2018 to its successful listing this year, Zhiou Technology has completed nine rounds of financing, of which Anker participated in the first two rounds of financing, with a total investment of RMB 65 million. It is currently the second largest shareholder of Zhiou Technology. Jiayu Capital, which has long been paying attention to the cross-border overseas track, has also invested heavily in Zhiou Technology in two rounds.

Unlike some businesses that focus on primary categories, Taili Technology, which passed the Shenzhen Stock Exchange's Growth Enterprise Market Review in August, focuses more on the sub-category of home storage. It is understood that Taili Technology's main products are vacuum storage, wall-mounted storage, food preservation, etc. Many of its products have been selected as Amazon's best-selling products and the first on the new product list. The inconspicuous vacuum storage product alone can sell 40 million units a year.

Unlike Zhiou Technology, Jesia Home Technology Co., Ltd., which started A-share IPO counseling in November this year, is a company that has transformed from traditional trade to cross-border Internet home furnishing. In order to break out of the home furnishing track, Jesia went overseas with the niche market of seating (chairs, etc.) and successfully ranked among the top in the category. Currently, its products involve furniture fabrics, home beds, etc., and it is known as the dark horse of cross-border home furnishing e-commerce. In addition, Jesia also has its own factories in Vietnam, the United States and other places.

Another company that started the IPO process, Mingyuan Creative, submitted its listing guidance filing materials on November 16 and has now completed the guidance filing. Nearly 90% of its sales are overseas. It mainly sells home textile products such as pillowcases and mattresses. It has multiple brands such as PHF and Davis, and some of its products have won the top spot on the Amazon BSR list in a specific category. Although Mingyuan Creative's cross-border online business currently accounts for a relatively low proportion of only about 10%, its revenue has doubled every year, and the future is promising.

However, the home furnishing category today is not as popular as it was during the epidemic. Going public at a time when home furnishing companies are facing a cold wave, IPO review is strict. Zhiou Technology’s IPO road has been ups and downs. It is possible that listed home furnishing companies will encounter multiple setbacks before going public.

Portable energy storage category

With the increasing demand for outdoor camping among overseas consumers, many outdoor categories have experienced unprecedented growth, especially portable energy storage products that are used as power supply equipment for lighting fixtures, ovens, etc., which have also spawned a number of brands and products, becoming an irresistible emerging force in the consumer army. In the portable energy storage category, Europe and North America are the main markets, and the leaders in the category are all entrenched in Shenzhen, China.

Before 2023, Huabao New Energy, which is well-known overseas, has successfully listed, and brands such as Anker and Xiaomi have also divided the market. In 2023, three companies, Zhenghao Innovation, Delan Minghai, and Dongguan Langtaitong Technology (Delan Minghai's supplier), are in the IPO process.

As a brand that surpassed Huabao Energy and became the first in the industry, Shenzhen Zhenghao Innovation Technology Co., Ltd. focuses on outdoor power products. As early as September 2021, it signed a listing guidance agreement, and the current progress is unknown. However, it has always been well-known overseas. When it was first established in 2017, it received investment from many experts and scholars in the field of science and technology. In 2021, it also won a $100 million Series B financing from Sequoia China and other investors, with a valuation of over $1 billion, officially becoming a unicorn.

Although there is no public data, according to the 300% revenue growth in 2022 disclosed by the company, combined with the revenue in 2021, it is estimated that Zhenghao Innovation's revenue in 2022 will exceed 6 billion yuan. However, in the capital market, Zhenghao Innovation has not heard any new news for nearly two years.

Another unicorn, DeLan MingHai , filed for listing guidance in March 2023. Founded in 2013, DeLan MingHai first entered the energy storage market as an ODM and is a major supplier to Anker Innovations, Global Easybuy and other companies.

In 2020, when energy storage exploded, DeLan Ming Hai turned branding into reality, launching the Bluetti brand, focusing on e-commerce platforms and independent websites. Two years later, DeLan Ming Hai has successfully completed the transformation from an OEM to a TOP3 seller, and its category market share ranks among the top three in the world. In 2022, DeLan Ming Hai's revenue reached 2 billion yuan, and it is expected to reach 5 billion yuan in 2023.

Portable energy storage is booming, and suppliers are also following suit. Dongguan Langtaitong Technology Co., Ltd. is also striving to go public. As a supplier of popular products such as Delan Minghai and Powerplus, Langtaitong focuses on products in the three major areas of energy storage, small power and consumer products. Since 2020, both revenue and profit have been growing.

However, there has been controversy in the market about the future development of the energy storage track. Some investors believe that its scale is limited to a small "niche market", the industry's technical barriers are not high, and it is easy for new players to enter the market. As the industry becomes increasingly crowded, the core functions of each company's products are converging, and the future competition will focus on the marketing end. Some brands, including Zhenghao Innovation, are also facing the question of whether to extend their product lines to home energy storage or start a second growth curve.

3C Category

The 3C category has always been a red ocean category in the cross-border e-commerce field, and has long occupied the top few positions in the hot-selling categories on major platforms. Many big sellers have seized the business opportunities and soared to become the top sellers on Amazon. The fierce competition can be imagined. Most categories are monopolized by big sellers, and small and medium-sized sellers dare not easily enter, and can only seek a ray of hope in the subdivided track.

In the 3C track, in 2023, one company, Maxicon (invested by Anker), was successfully listed, two companies, UGREEN and Tongli Technology (Anker supplier), are striving for IPO, and the IPO of PISEN Electronics was suspended in 2023.

On May 22 this year , Maxic Technology (Beijing) Co., Ltd. successfully landed on the Shanghai Stock Exchange Science and Technology Innovation Board. Huawei and Anker are both investors in Maxic, whose main product lines focus on wireless charging series products and LED lighting driver series products. Its terminal products cover well-known first-line brands such as Xiaomi. Maxic plays more of a supplier role.

In contrast, UGREEN Technology, which passed the listing committee meeting this year and is about to knock on the door of the Shenzhen Stock Exchange's Growth Enterprise Market, can be regarded as an old hand in the 3C category. Starting with a data cable, it suffered a lot in the OEM factory stage because of "difficulty in mastering pricing power and being snatched away by competitors at low prices". In 2014, when the cross-border circle was in a fierce battle, UGREEN Technology went overseas with its own brand "UGREEN". In half a year, the daily sales on Amazon exceeded 20,000 US dollars. Now UGREEN Technology has expanded its product line to charging products, docking stations, shared switches, etc., and has successfully joined the ranks of 3 billion-level 3C sellers.

Tongli Technology Co., Ltd., a major 3C manufacturer, has entered the "submission of registration application to the China Securities Regulatory Commission" stage in November, and its listing is just around the corner. Tongli Technology mainly produces acoustic products and smart products, such as speakers, wearable devices, etc. Tongli Technology is a supplier to many cross-border sellers, and Amazon and Anker Innovations are its main customers.

Some people have successfully listed, but others have been suspended as soon as they submitted their listing applications. In 2022, Guangdong Pisen Electronics Co., Ltd. once again impacted the capital market. It went through 5 rounds of listing guidance before successfully submitting its listing application. In June this year, its listing application was accepted by the Shenzhen Stock Exchange, but in September, the listing application was suspended. Although it is known as the "leader of 3C smart peripheral products" overseas, Pisen Electronics' best-selling product is still data cables, with annual sales reaching 24.73 million in 2022.

The 3C track is booming and the competition is fierce. If sellers want to stand out from their competitors, segmenting the track may be a good choice. SmallRig, which specializes in 3C photography accessories, has made it to the Amazon BSR list and the top 100 list of overseas brands’ social media influence, which is the best example.

Power tools category

For overseas consumers, it is very necessary to tidy up their homes and buy various power tools, which has kept the market demand for power tools high for a long time, and many companies have also grown and developed accordingly. There is a lot of capital investment in this category. As early as the first half of this year, many brands such as Zhongqing Technology (swimming pool robot), Changyao Innovation (mowing robot), and Novabot (intelligent mowing robot) received a new round of financing.

In 2023, in the electric tool category, two companies, Greebo and Zhejiang Pride, were successfully listed.

In January this year , Greebo (Jiangsu) Co., Ltd. was listed on the Shenzhen Stock Exchange's Growth Enterprise Market, becoming the first new energy garden machinery stock. Greebo's main products include lawn mowers and hair dryers. Many of its products are always at the top of Amazon's BSR. Its annual revenue has exceeded 5 billion yuan, making it one of the top three brands in the industry in Europe and the United States.

The other is Zhejiang Pulide Electric Co., Ltd., which was successfully listed on the Shenzhen Stock Exchange at the end of May this year. It focuses on power tools and sells products in a dual-drive model of "ODM+OBM". In addition to cooperating with well-known brands, its products are vigorously promoted under its own brands. The brand has already won the Amazon Best Seller.

Outdoor product category

In the outdoor product category, in 2023, only one company , Xiamen Duyuan Outdoor Co., Ltd. , is seeking to go public. It has passed the review meeting of the Listing Review Committee and is one step closer to going public. Its main products are RV and yacht supporting products and water leisure sports products, such as small and micro water pumps and kayaks. In addition to cooperating with some large brands, its own brand Seaflo has long been among the best sellers of marine water pumps on Amazon in the United States.

Home appliances category

In the home appliance category, one company, Hubei Xiangjiang Electric Co., Ltd., is trying to go public, and is currently in the "inquiry" state. It is understood that Xiangjiang Electric mainly sells two categories of electrical household products (air fryers, blenders, etc.), garden hoses and other products. The company mainly adopts ODM and OEM models, supplemented by its own brand business. Nearly 90% of its revenue comes from overseas. It has multiple self-operated brands, and most of its products are Best Seller level. Some of the hot-selling items have more than 10,000 reviews and thousands of monthly sales.

Where capital is looking often means where there are opportunities. In 2023, a group of companies embarked on the IPO road with the support of capital. Of course, there are also some categories that are favored by capital and frequently receive considerable financing, which may be more vibrant in the future.

In 2023, more than ten categories will receive financing, and investors are more willing to pay for these brands

According to incomplete statistics, more than 30 cross-border e-commerce brands received financing in 2023, most of which are start-ups. Among them, capital is most favored in the fields of robots, E-bike, 3C, etc. The financing amount of these brands is mostly in the billion level, but the overall scale of investment shows a downward trend compared with 2022.

Clothing category. The industry's largest round of financing still comes from SHEIN. In May this year, SHEIN's latest round of financing was US$2 billion, with a valuation of US$66 billion. Among all cross-border clothing brands, there are almost no brands that can compete with SHEIN, but driven by capital, its rising stars are emerging in an endless stream.

Urbanic , which focuses on fast, high-quality and low-priced fashion clothing, has some products priced at only one-third of Zara's. It is affiliated to Hangzhou Feier Technology Co., Ltd. and was established in 2019. In November this year, Urbanic won $150 million in Series C financing. So far, Urbanic has won a total of 4 rounds of financing, exceeding $160 million.

Robotics track. This year, there have been 7 financings in the robotics track alone . Among them is Hanyang Technology Yarbo, which focuses on garden robots. Founded in 2015, it mainly develops robots for snow sweeping, garden intelligence, lawn mowing, etc. This year alone, Hanyang Technology has won two rounds of financing, totaling US$20 million.

In addition, Xingmai Innovation, which focuses on pool cleaning robots, won nearly 200 million yuan in angel round financing, Zhongqing Technology won nearly 100 million yuan in B round financing; Pudu Technology (commercial service robots) won hundreds of millions of yuan in C4 round financing; Town Intelligence and Novabot also won a lot of financing.

Gemtek, a big seller of mobile phone cases, is also entering the field of intelligent robots, investing 8.8 million yuan in Siotuo, a company specializing in underwater cleaning robots. The company was founded in 2021 and developed three industry-leading robots within half a year.

E- bike track. With the overseas demand surging, hundreds of brands around the world have entered the E-bike track. And there is no doubt that the brands that attract capital are TENWAY, which won 300 million yuan in round A financing in January this year. It is affiliated to Shenzhen Shifang Sports Technology Co., Ltd. and was established in 2021. In less than two years, TENWAY has won 3 rounds of financing. In addition, Shenzhen's E-bike brand VELOTRIC has also won tens of millions of yuan in financing, focusing on entry-level products.

3C category. Shenzhen Baseus Technology Co., Ltd., a big player in the overseas market, completed two rounds of financing this year, but the specific amount was not disclosed. Another brand in the audio track, Frog Sound Technology, which mainly deals in microphones, cameras and other products, completed a C round of financing of 100 million yuan this year. So far, it has completed 5 rounds of financing. There is also FreeYond's 100 million yuan angel round of financing, and Diexi Technology's 3 million yuan financing.

Portable energy storage category. Zendure, an overseas energy storage brand founded in 2017, has been deeply involved in the fields of household energy storage and portable outdoor power supplies. This year, it received nearly 100 million yuan in financing. So far, it has completed 5 rounds of financing, which is enough to show the favor of capital.

Smart pet track. Shenzhen Qianhai Horman Technology Co., Ltd., a technology company focusing on smart pet products, was founded in 2015. It mainly sells pet drying boxes, pet water dispensers and other products. This year, it completed a C round of financing of nearly 100 million yuan.

In addition, Momcozy, a brand that focuses on maternal and infant products , also received strategic investment. Its breast pumps are very popular on Amazon, with monthly sales exceeding 150,000 units. Zhejiang eyewear brand Rokid received $100 million in financing. In the fields of smart charging piles and smart security, there are also brands that have received a lot of financing.

Among the big sellers, there are many joint investments. Aoji and Zhejiang Yongqiang set up a company mainly engaged in outdoor furniture; Zhiou and Saiwei Times jointly invested 60 million yuan to invest in cross-border e-commerce companies such as consumer electronics, clothing and apparel, furniture and home furnishings, and outdoor sports.

In 2023, due to various factors, the ecology of listing and financing has declined, the financing front and cycle have been continuously extended, and the companies that can successfully go public and obtain financing have already been screened by capital for profitability. Can the categories and brands that were favored by capital in 2023 continue to move forward in the changing 2024?

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