Dingdong IPO: What to know about Dingdong

Chinese grocery app Dingdong has seen a rise fuelled by ample funding and strong lockdown demand. Here’s everything you should know about the business following its US IPO.


When was the Dingdong IPO?

Dingdong Maicai's US IPO occurred on June 29 2021, with the stock debuting at $23.50 per share, meaning a valuation around $6.6 billion on the day.

Check out more IPOs for 2021.

What does Dingdong do?

Dingdong Maicai is a Shanghai-based groceries app, enabling its customers to order on-demand fresh goods via a network of ‘front warehouses’. These premises are strategically located close to residential areas to enable the company to provide a 30-minute delivery guarantee. Its service currently covers major Chinese cities such as Shanghai, Beijing, Shenzhen, and Hangzhou.

The company was founded in 2017 by serial entrepreneur Liang Changlin and attracted venture capital funding from the likes of Sequoia China and Qiming Ventures, with other stakes owned by Tiger Global Management, Gaorong Capital, Fortune Capital and more. Dingdong moved quickly to triple the number of its distribution centres to 345 in seven months.

By February 2020, Dingdong reportedly processed around 300,000 orders daily during the coronavirus outbreak in Shanghai, and the year’s revenue figures totalled some $1.7 billion. As of January 2021, it had opened groups in nearly 30 cities across the country, with about 1,000 warehouses, and counts around 6.9 million customers as its monthly userbase.

The company’s closest rivals in the space include Alibaba-backed Hema, Meituan Maicai, Tencent-backed Missfresh, and JD Daojia. Internationally, US-based Instacart is operating a similar model.

How does Dingdong make money?

Dingdong makes money through the sale of groceries through the app. Currently, this figure is not sufficient to turn a profit, leading some commentators to question the efficacy of the ‘distributed mini warehouse’ or DMV model, a term used to encapsulate the blending of storage and distribution employed by Dingdong and its rivals.

What is Dingdong's business strategy?

Dingdong’s approach makes full use of big data, employing proprietary data models to enable the company to predict future orders and customer habits.

The company’s business strategy, following a potential IPO, will likely be to increase market penetration in the regions it currently services as well as expand into new territories. The company has indicated that a proportion of the funds will be put towards upstream procurement capabilities, with further investment in its retail cloud business, including R&D.

After it raised $700 million in April 2021, Dingdong set out to improve its supply chains, with a large portion of prior spending going towards advertising and front warehouse capacity.

Is Dingdong profitable?

Dingdong is not profitable as yet, and the company’s sector is a notoriously tough environment to grow margins. For example, the order fulfilment outlay for Dingdong, encompassing delivery partner fees, packaging, and miscellaneous logistics costs, reportedly amounted to around two times net revenue per order for 2020. There may be concerns among would-be investors that order volume growth may not be sufficient to increase profitability any time soon, and so controlling burn rate for companies using the front warehouse model is a talking point.

For comparison, US grocery delivery operator Instacart was reportedly losing $25 million a month several years into the company’s journey. 

Who owns Dingdong?

DiDi’s ownership is split between a variety of shareholders, including Changlin at around 30% and a range of financiers as mentioned above, with Internet Fund V Pte. Ltd. owning a 5.7% stake and General Atlantic Singapore DD Pte. Ltd and SVF II Cortex Subco (DE) LLC owning 5.6% of the company.

According to Crunchbase, 22 investors have a stake in the company, with the most recent raises led by SoftBank Investment Advisers in May 2021 and DST Global in April 2021. Funding has been achieved over seven rounds so far, to the tune of $1.3 billion.

Key personnel at Dingdong

DiDi has a number of key personnel that have helped progress the company to its expected IPO valuation. Here are some of them.



Founder and CEO

Liang Changlin


Xu Jiang


Joy Yu

How to trade top stocks

  • Open an account with us, or log in if you’re already a customer
  • Search for the company you want to trade in our award-winning platform
  • Choose your position and size, and your stop and limit levels
  • Place the trade.

More from Equities


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.