In September 2020, Jebsen Capital invested as part of the investment consortium in the take-private transaction of 58.com Inc. (“58”, ticker before delisting NYSE: WUBA) – one of the largest take-private deal of a US-listed Chinese internet company in history, valuing at approximately USD 8.6bn.
Founded in 2005 by Mr. Jinbo Yao, a reputable internet entrepreneur in China, 58 operates China’s largest market place for classifieds, as measured by monthly unique visitors to its flagship www.58.com website and mobile applications. The company’s online marketplace enables local business owners and consumers to connect, share information, and conduct businesses. 58.com’s broad, in-depth, and high-quality local information, combined with its easy-to-use website and mobile applications, have made it a trusted marketplace for consumers in China.
58’s businesses currently consist of core businesses and incubated new businesses. The 58 core businesses are comprised principally of 58.com and Ganji, multi-content category online classifieds platforms; Anjuke, a real estate listing platform; ChinaHR, a recruitment platform that focuses on white-collar jobs; and Jia Xiao Yi Dian Tong, an online platform for drivers’ license examination preparation and other related services.
The incubated new businesses include Zhuan Zhuan, an online used goods trading and service platform, and 58 Town, a rural version of 58.com. In addition, 58 Home (a home services platform) and Chehaoduo (China’s leading O2O automotive transaction platform) were initially incubated within 58 or Ganji, both have completed fundraisings from additional leading external investors.
As of Mar 31, 2019, 58’s online services cover 338 cities, 491 counties, over 12,000 towns and villages in Mainland China, and approximately 600 million total users.
On Jun 15, 2020, 58 announced that it has entered into a definitive agreement to be taken private by an investment consortium led by Warburg Pincus, General Atlantic, Ocean Link, and Mr. Jinbo YAO. Jebsen Capital participated in the transaction in partnership with InnoVision Capital, a leading Chinese mid-market private equity firm focuses on investment in the consumer services sector.
This investment aligns with Jebsen’s core strategic objectives to remain close to Chinese consumers, and to gain proximity to China’s rapidly developing consumer internet sector. The investment opportunity also offers strategic value to Jebsen Capital to continue to capture growth opportunities in China’s internet and consumer sectors.