Backed by HSG, formerly Sequoia China, China’s second largest provider of e-commerce services is raising cash for its fast-growing livestreaming business
image credit: Bamboo Works
Key Takeaways:
- BMax has filed to list in Hong Kong, seizing on its status as a first mover in developing livestreaming e-commerce services in the world’s largest online retail market
- The company’s core business offering services in traditional e-commerce grew by just 10% between 2023 and 2025, compared to 64% growth for its livestreaming business
In a park in western Shanghai’s leafy Changning district, the Romomo Live Streaming Center is a showcase of livestreaming technology that’s all the rage these days on China e-commerce scene. The facility features 150 broadcast studios in two buildings and 300 resident hosts, who, on any given day, are likely to be pitching high-end international fashion and footwear brands. Those brands are all customers of Romomo’s parent, Shanghai Buy Quickly BMax Technology Services Group Co. Ltd.
Now, BMax is bringing its e-commerce services story to the capital markets with its application last week for a Hong Kong IPO, aimed at raising cash to expand the company’s fast-growing livestreaming business. The listing boasts an all-star cast of Citic Securities and CLSA as underwriter and coordinator, respectively, with HSG, formerly Sequoia China, as a major backer, indicating it’s likely to be relatively large, perhaps raising $100 million or more.
BMax is no run-of-the-mill e-commerce services provider, focused squarely on the mid- to luxury-end of the market. Its clients last year included 70% of the world’s top 20 high-end fashion brands, earning it a reputation as a “gondolier” steering names like LVMH and Estée Lauder to online shoppers.
It ranks second nationally in terms of gross merchandise value (GMV) handled through its e-commerce services, with 39.7 billion yuan ($5.82 billion) in GMV last year, giving it 2.7% of the domestic market. Only Baozun (9991.HK, BZUN.US) was larger, with 5.3% of the market, according to third-party data in the company’s prospectus.
But BMax faces stiff competition from not only Baozun, but also names like Weimob (2013.HK), Qingmu (301110.SZ) and Bicheng Digital, among others vying for a piece of the huge market. The result is price pressure. Brands that are the chief customers of these service providers are shopping for companies that offer the lowest service fees and commission rates, and are also setting up their own in-house e-commerce teams. At …
This post was originally published here
