You guys realize that Temu is backed by Pinduoduo, one of the largest e-commerce startups in China/theWorld right?
At least you admit you don't know much about the space, though.
At least you admit you don't know much about the space, though.
Some recent examples:
Evergrande - one of the biggest property companies in China. Also, a fraud https://www.bbc.com/news/business-68603195
Sino Forest - Massive. Listed on the Toronto stock exchange. A fraud https://moneyweek.com/economy/people/601220/great-frauds-in-...
Lantian Gerui - Fast-growing investment company, 100s of thousands of investors. A fraud. https://www.ft.com/content/605a7ca9-3f5f-47e6-ab5c-818b9a1bf...
Pinduoduo themselves have been accused of using improper accounting practices to hide losses and inflate revenues https://www.ft.com/content/314a56d0-e899-11e8-8a85-04b8afea6...
The worst case is that the unsustainable growth is propped by VC money, like the early days of Uber, but the consumer is still the one that's profiting here.
The US bbb has them at a "C+" rating due to complaints about goods being ordered but not arriving etc[2]
[1] https://www.which.co.uk/news/article/what-is-temu-and-is-it-...
[2] https://www.bbb.org/us/ma/boston/profile/online-shopping/tem...
https://krebsonsecurity.com/2023/03/google-suspends-chinese-...