Winning the new financial era

Chapter 385 Buy Low and Sell High
"What conditions?"

Chen Wei suddenly became vigilant, and Didi raised more than ten rounds of financing.

What kind of virtue capital is, he has already understood it beyond recognition.

He looked at Xue Cunhe calmly, trying to appear calm.

In fact, his heart was not peaceful, and he began to guess what kind of conditions Xue Cunhe would propose, and which ones he could accept.

Xue Cunhe stirred the mellow coffee with a spoon, and said calmly: "It's very simple, it solves the problem of the last mile short-distance travel."

"A short last mile trip?"

Chen Wei said lightly, isn't it specific to share bicycles?
Bike sharing has always been a thorn in his heart, and it is also the trigger for the deterioration of his relationship with Zhang Yida.

In the final analysis, Didi was still a step too late.

Whether it is investing in Huimin bicycles or buying Xiaolan bicycles to officially enter the market, it is a step too late.

Zhang Yida laid the bicycle very quickly, and the rhythm was not chaotic, as if he had planned it in advance.

He heard that in the early stage of the development of Huimin Bicycle, it only entered a few cities, but it has reserved offline dispatching backbones in more than a dozen cities.

From the perspective of operating costs alone, this is a typical extravagance and waste;
From a strategic point of view, this is to plan for a rainy day and anticipate the enemy before the opportunity.

Later facts also proved how prescient Zhang Yida was.

Using fast-paced financing and bicycle launch, it quickly widened the gap with other competitors.

Then the financing of this track was basically taken to his company, and other people could only sigh in dismay when faced with Huimin Bicycle's terrifying number of bicycles in the tens of millions.

There is no high threshold for shared bicycles, and it is normal that they will be imitated after they are launched on the market.

Zhang Yida was able to predict this, which is nothing special.

What Chen Wei really admired was his execution ability and courage.

While other bike-sharing companies were still walking and watching, Zhang Yida risked everything, frantically investing in bikes, making data, and getting financing.

In fact, at this point, the others have already lost.

Chen Wei also knows that Huimin Travel’s B+ round of financing is 15 billion US dollars, of which 10 billion US dollars is actually debt financing.

Zhang Yida gambled on his shares in Huimin Travel, and even used his personal property as a guarantee to get the 10 billion US dollars that sealed the victory.

While other bike-sharing companies are still struggling to raise tens of millions of dollars in financing, Huimin Bike already has more than one billion dollars in capital.

To put it simply, it is to overwhelm people with power.

It sounds like the operation is quite simple, but Chen Wei himself knows the danger involved, ability, courage, and vision are indispensable.

The importance of shared bicycles is self-evident for Didi, which aims to dominate the field of large travel.

But Didi was held back by Kuaidi and Uber at the time, and it was impossible to spare more energy to deploy shared bicycles.

After Didi settled all the threats in the taxi-hailing field in China, the pattern of shared bicycles has been formed.

At the top of the pyramid is Huimin Travel, which has tens of millions of bicycles and occupies more than 80% of the industry's market share.

Little blue bicycles and hello bicycles only have hundreds of thousands of bicycles, with a market share of a few percent.

Chen Wei also thought about whether he should melt him down for a round, and then spend 30 billion US dollars on Xiaolan Bicycle, so as to fight against Huimin Travel.

In terms of burning money, Chen Wei has never been afraid of anyone in China.

But this can only be thought about. Whether investors dare to play such a big game with him is a big question mark.

"Mr. Xue, how do you mean to solve it?"

Chen Wei thought for a while, and felt that Softbank would definitely not support him to start a new round of bike sharing battle.

Because Softbank has a lot of shares in Didi and Huimin Travel, how could it be possible to let the tongue and the teeth fight.

He vaguely guessed Xue Chunhe's true intentions, but he was still not completely sure.

Xue Cunhe smiled, "Mr. Chen, it has been almost five years since Didi was founded, and today it has lost more than 200 billion yuan in total.

Have you ever thought about how to make Didi fully profitable? "

Chen Wei frowned. This question has been asked for a long time, and he has answered it more than once. Why are you still asking?

"I still say the same old saying, Didi is making a big cake. As long as we stop market subsidies, we can quickly move towards profitability.

But this kind of profit is not what Didi really wants. "

Chen Wei straightened his body and said confidently: "What we really want is to make Didi a platform with daily orders exceeding [-] million.

Food, clothing, housing and transportation, our goal is to monopolize one of them. "

"That's right, SoftBank appreciates and supports Mr. Chen the most ambitious business founders."

Then Xue Cunhe changed his voice, "However, there is still a long way to go to achieve this [-] million-level goal.

Didi's current daily order volume is 2000 million orders. According to the annual growth rate of 1000 million orders, it will take 8 years to achieve this goal. "

"Eight years, the war of resistance is over!"

Chen Wei shook his head, "It will take less than 8 years, and our internal estimate is to achieve this goal around 2020."

"How many daily ride orders does Little Blue Bicycle have?" Xue Cunhe asked.

"We have 60 small blue bicycles in operation, concentrated in first- and second-tier cities, and the riding frequency is relatively high. The highest daily order has reached 300 million."

Xue Cunhe nodded, and asked again: "What about the operating loss?"

"If you don't include the depreciation of bicycles, the monthly loss is more than 1000 million yuan.

Including bicycle depreciation, the monthly loss exceeds 3000 million. "

After hearing this, Xue Cunhe said earnestly: "The last mile of short-distance travel is always a shortcoming for Didi.

The little blue bicycle did not play the role of traffic entrance, but became a burden instead.

Do you have any good solution? "

Chen Wei shook his head and smiled wryly, "It's too late for us to enter. If we don't invest more, this is the situation at best."

"Do you want to buy Huimin Travel?"

Chen Wei looked happy, "Zhang Yida is willing to sell?"

Xue Cunhe adjusted his glasses, "As long as it is something, there is a price. It's just that you can't see the starting price, and you are willing to bid."

Chen Wei's brain was spinning rapidly. Judging by Xue Cunhe's attitude, could it be that he and Zhang Yida had reached a preliminary agreement?
Thinking of the 1.82% stake that Didi just sold, it was a blood loss.

Softbank’s operation is really showy, first sell the shares at a low price, and then let Didi buy Huimin Travel at a high price.

Buying low and selling high, I, Jinshahe Venture Capital, and Jingwei Global were all fooled.

"Forget it, Huimin Travel is so highly valued, and its financial situation is also a mess.

Why do we buy it, and add another burden? "

Xue Cunhe laughed, Chen Wei's words were insincere, and even a three-year-old child couldn't be fooled.

"With the acquisition of Huimin Travel, Didi's daily order volume can increase by 4000 million orders to 6000 million orders.

The big travel strategy has made another breakthrough, shared bicycles for short-distance travel, and Didi is the overlord among the overlords.

At that time, Hello Travel will also be acquired.

In the field of shared bicycles, Didi is an absolute monopoly.

It is a joke that shared bicycles are difficult to make a profit.

Increase the bicycle ride rate to one yuan for half an hour, and all free rides will be cancelled.

Do users have other options?
As for whether it will arouse public indignation and new challengers will emerge?
Who dares to enter?With an investment of less than 200 billion yuan, even the waves can't afford a single one.

How many companies in China can afford this money?

Both Ari and Penguin are shareholders of Didi, plus Zhang Yida.

At least in the field of shared bicycles, no one will come against you.

In addition, Huimin Bicycle will become Didi's new traffic portal, which will also drive Didi's existing business volume to increase.

Didi can also use this acquisition to further squeeze the living space of other taxi-hailing software and increase its market share.

The merger and acquisition of Huimin Travel is beneficial to Didi and has no harm.

Whether it is from strategic layout, increasing market share, or enhancing the intrinsic value of the company... it is necessary. "

Chen Wei admitted that he was moved.

For other companies, Huimin travel may not be of much use.

But for Didi, it is a perfect match!

Mergers and acquisitions, for him, are not contradictory at all.

Didi has done this kind of thing twice, and he is very familiar with it.

As for the purchase price, he didn't care too much.Anyway, capital pays the bill, and the founders just need to dilute their shares.

Although the shares are diluted, the value of the shares has increased, so there is no need to entangle at all.

In addition, spending US$50 billion to purchase Huimin Travel can increase Didi’s valuation by at least US$100 billion by telling stories in the capital market.

Because it creates chemistry!

Xue Cunhe discussed with Chen Wei again, and then left with satisfaction.

……

"Yida, I heard that Musical.ly has entered Korea. How is the response?"

Zhang Yida looked at Xue Cunhe and thought that this was too strange.

Mr. Xue asked Green Scooter for a while, and asked about the development of Ruixiang Digital Technology Group for a while.

Inquired about all the companies under his umbrella!What is he trying to do?
"Yida, don't get me wrong!"

Seeing Zhang Yida's strange eyes, Xue Cunhe explained: "I'm just curious.

It is good for ordinary people to run a unicorn company well, but unlike Yida, you manage so many unicorns at the same time, and you can bring each of them to the number one position in the industry. "

"Haha, Mr. Xue is over the top! In fact, sometimes I feel that I don't have enough energy!

Many tracks also entered early to seize the opportunity. "

Xue Cunhe waved his hands, laughed loudly and said, "Yida, don't be too modest!

What I admire most about you is that you have lofty goals and ambitions.

Now Green, Ruixiang, Zhonghe Group, and Yimin Wangjin are all working hard in the direction of multinational companies and global technology companies.

It is not limited to the domestic market, which is really impressive!

Nesting in China, it's nothing more than being a local rich man.

But in you, I see the shadow of a great entrepreneur. "

Zhang Yida had heard this kind of talk too much.

He smiled and said, "Boss Xue, if you have anything to say, just say it!"

Xue Cunhe said seriously: "I think Yida, you should focus more on industries with more possibilities."

"More possibilities?"

Xue Cunhe went on to say: "For example, short videos, social e-commerce, mobile payment, etc."

"No shared bicycles?"

Xue Cunhe shook his head, "The development space of Huimin Bicycle has reached its peak, and there is no more possibility.

As for the field of travel, Didi has a huge lead.

The aggregation of taxis and free rides launched by Huimin Travel will not shake the foundation of Didi, and at most they will seize a small part of their market.

As for the express car brand, I think you have not quit for a long time, so I am afraid that you are not too sure. "

"Then according to Mr. Xue, what should I do?"

Xue Cunhe said with a smile: "Sell and cash out when the value is currently at a high level."

　Thank you handsome is a kind of trouble for your reward!Thank you for the support and subscription of other book friends.

　　
　
(End of this chapter)