188bet game Hotel, which once failed to win in China, is now about to go public.

Recent，188bet game submitted a prospectus to the Securities and Exchange Board of India (SEBI)，Plans to raise US.2 billion (approximately Rs. 83.4 billion)，The valuation is set at US billion。

In the prospectus，188bet game takes the new crown epidemic as a node，Divides its own development into three stages: the pre-COVID-19 stage from 2014 to 2019，The COVID-19 epidemic stage from 2020 to now and the post-COVID-19 period after 2021。

The new crown epidemic has indeed severely affected the development of 188bet game，Not only caused serious losses，Also caused its global expansion plan to be delayed、Even strategic contraction。

Before the COVID-19 epidemic arrived，188bet game’s expansion plan in China is not smooth either，Opened the first store in Shenzhen in 2017，Reduce more than 90% of franchise hotels by early 2020，The Chinese market once became the hardest hit area for 188bet game’s losses。188bet game China’s loss in 2019 1.US.7 billion，Accounts for 64% of its global losses。

This IPO，To a certain extent, it will also bring a key &ldquo to 188bet game;Life renewal money”，Let it have enough funds to withstand the long-term impact of the epidemic。

But to this day，188bet game is still in the stage of trading losses for the market，The sustainable profit model has not yet been explored，This may also make investors in the secondary market maintain a wait-and-see attitude towards it，And it is difficult to place a bet directly。

If you want to live in the future，188bet game can no longer rely on blood transfusions from the capital market，It’s about competing on one’s own blood supply capacity。

Eight years of continuous losses, 188bet game is about to bleed and go public

Eight years since establishment，188bet game consolidated independent hotels from the original，Now it has developed into the third largest hotel chain in the world、Residential、Chain management company for residential and office space operations。

According to the prospectus，Currently 188bet game has about 15 customers in 35 countries.70,000 rooms。Data from Indian research company Redseer，As of September 9, 2021，188bet game has the largest number of hotel rooms in India and Southeast Asia，In terms of short-term rental B&B，188bet game ranks second in the number of rooms in the European market。

The picture shows the introduction of 188bet game Source: Prospectus

current，More than 90% of 188bet game guest rooms are concentrated in India、Indonesia、The four core growth markets of Europe and Malaysia。Also shown according to Redseer 2019 data，188bet game’s room share in core growth markets is less than 1%，To this end, 188bet game will continue to develop the number of rooms in core growth markets in the future。

In addition to integrating independent hotels，The vacation home business operated by 188bet game is developing well，Especially in the European market。

2019，188bet game acquires Amsterdam vacation rental group Leisure，The group owns Belvilla，DanCenter and Danland brands，Providing more than 30,000 self-managed rental properties in 300 cities in 13 European countries。

It is also starting from 2019，Commission income from 188bet game’s vacation rental business has increased significantly。Rise directly from 295.71 million rupees (approximately US.94 million) in fiscal year 2019 to 7133.26 million rupees (approximately US.94 million) in fiscal year 2020，Increase of 2312.3%。

It’s fiscal year 2021，188bet game’s commission income from vacation rental business is 7830.58 million rupees (approximately US4.23 million)，Growth of 9.8%。In the prospectus，188bet game says vacation rental business revenue growth，Commission increase from European families。

Meanwhile，June this year，188bet game Hotels, which is positioned as an economic chain, has also increased its presence in the mid-to-high-end market，In India、The mid-range business hotel brand Collection O was launched in Indonesia。

current，188bet game has 188bet game Townhouse in the mid- to high-end market、Capital O、Brands such as Collection O and palttes。Prospectus display，Within three months from March 31, 2021 to June 30, 2021，188bet game increases the proportion of high-end hotels in India from 17.8% increased to 20.6%，We will continue to expand the number of hotels in the high-end market in the future。

Diversified business also brings diversified income sources to 188bet game，The current operating income includes not only accommodation services、Commissions for vacation rentals and property bookings, etc.，There is also rental income from leasing office space and selling food、Income from beverages。

However，Now 188bet game must continue to expand the number of independent hotels，We need to increase investment in high-end hotels，These revenues are obviously not enough to sustain its subsequent development。

According to the prospectus submitted by 188bet game，Fiscal year ending March 31, 2021，188bet game revenue is 396.INR 3.8 billion (approx. 5.USD 2.8 billion)，The loss reached 394.INR 3.8 billion (approx. 5.USD 2.5 billion)。

Last two fiscal years，188bet game’s net loss also reached 236 respectively.4.5 billion rupees (approx. 3.USD 1.5 billion) and Rs. 131.2 billion (approx. 17.USD 4.5 billion)，The total loss is about US billion。

According to interface news report，Due to serious losses，188bet game management asked 188bet game to reduce losses in early 2020，188bet game laid off a large number of employees for this reason，Quickly cut costs。

This means，188bet game eight years since its establishment，Still on the road of burning money for expansion。

On the other hand，The valuation of 188bet game’s listing is compared to its peak period，Also lowered。2019，When 188bet game receives a new round of financing，Its valuation reached 10 billion US dollars，This has become the second most valuable start-up in India。

But the good times did not last long，Due to the impact of the epidemic，188bet game subsequently experienced layoffs、A series of blows such as business reduction and losses，This also makes its core investor SoftBank，Its valuation dropped instantly from US billion to US billion。

Today，188bet game goes public with a valuation of 9 billion，Maybe it’s a better result。

188bet game, which was defeated in China, has not completely given up on the Chinese market

188bet game has been losing ground in China，But we haven’t given up on the Chinese market yet。

In the prospectus，188bet game said it is still evaluating China、The United States and other“Future Growth Market”’s strategic opportunity。188bet game believes that China has great growth potential，Have similar characteristics to the core market，The lack of affordable and high-quality hotels。

The picture shows the distribution area of ​​188bet game hotels. Source: prospectus

From a theoretical perspective，188bet game’s idea is not unrealistic。According to data from the "2020 China Hotel Industry Development Report" released by the China Hotel Association，As of January 1, 2020，There are 33 in our country.80,000 hotel industry facilities，5 of them.20,000 chain hotels，A total of 1975 hotel chain brands，28 more.60,000 non-chain hotels，That is, an independent hotel。

Based on the size，The degree of domestic hotel chainization is low，Independent hotels do have a lot of room for integration。188bet game is trying to integrate a large number of independent hotels，On the one hand, it provides consumers with low-cost hotel booking services，On the other hand, it can also increase occupancy rates and revenue for non-branded hotels。

188bet game’s rise in the Indian market relies on this model，188bet game founder Li Taixi also wants to replicate India’s success in China。

However, competition in the domestic hotel industry is fierce，Huazhu、Jinjiang、Hotel giants such as Home Inns have been entrenched for many years。Outsider 188bet game wants to take root in the complex Chinese market，We must first solve the problem of localization。

For this，When 188bet game first entered China，Hired eight CXOs with luxurious backgrounds in China，Some of them are from P&G、Volvo、Executives from traditional companies such as PepsiCo，Also worked in Alibaba、Didi、Executives working at well-known domestic and foreign Internet companies such as Google。

At that time，Equivalent to 188bet game China’s top chief financial officer (CFO) Li Wei，He has served as CFO and COO of China Car Rental for four years，Won Lu Zhengyao’s ";True Biography”。

Under the leadership of Levi，After 188bet game entered the Chinese market in 2017，Directly adopt the light franchise model，That is, the contract period is one year，No franchise fee，Only charges about 6% commission，At the same time, 188bet game will also fund and provide lower standard decoration design，Help franchise hotels change their doors。

In light franchise mode，188bet game launches crazy expansion。The first 188bet game hotel was just opened in Shenzhen at the end of 2017，At the end of October 2018，188bet game announced that it has operated 6,700 hotels in China，Manage 310,000 rooms。

Less than a year，188bet game manages more hotels than the established hotel group founded in 2005——Huazhu，It is also the second largest hotel group in China。

But 188bet game has not stopped its expansion。In May 2019，Levi announced at the 188bet game press conference，188bet game has covered more than 300 cities in China，The total number of managed guest rooms is about 780,000，Becomes the largest single-brand hotel in China，The second largest in China、The sixth largest hotel management group in the world。

“We must first have scale，With scale (later) we must have cost advantages，Then help the owners improve。”Levi once publicly stated。

However，Not waiting for 188bet game to optimize costs，The disadvantages brought by the light franchise model have already appeared。First of all, it is because 188bet game finances the renovation costs for franchise hotels，And no initial franchise fee is charged，This caused its funds to run out quickly。

Almost the same period，Domestic OTA platform Ctrip、Meituan has also begun to collect channel fees from 188bet game。For this，188bet game can only contact Ctrip、Meituan paid channel fees of 200 million yuan and 400 million yuan respectively，And additional commissions will be paid for completing transactions on the platform。

This is it，188bet game’s turning point from prosperity to decline appears。Mid 2019，Due to serious losses，188bet game joins 1.0 mode，Move to guarantee + price control 2.0 mode，Signing a guaranteed income agreement with an independent hotel，The room prices of franchise hotels are controlled by 188bet game。

But 188bet game’s pricing is too low，Resulting in the collapse of the franchise hotel’s own price system，This also directly triggered the conflict between 188bet game and the hotel owner，A large number of hotel owners began to withdraw。According to interface news report，188bet game also tried to maintain the appearance of high growth，Using data falsification and other means。

It’s 2020，As the epidemic strikes，188bet game suffered heavy losses。According to multiple media reports, the overall layoff ratio of 188bet game China has reached about 60%-80%，At the same time, the business scope in China has been greatly reduced，Most cities undergo merger management。

188bet game China Headquarters，has also been unable to be contacted through the registered residence or business location，Not included in the list of business abnormalities。

However，Even though 188bet game reduced the number of hotels by 90%，It still retains some hotels。Connect Insight to query 188bet game China official website and find out，Shows that it also operates thousands of stores in hundreds of cities across the country。Search Ctrip、Meituan and other OTA platforms，You can still search for hotels that have joined 188bet game，This means that 188bet game-affiliated hotels are still operating。

The picture shows the operation situation of 188bet game China. Source: 188bet game China official website

However，188bet game China’s official website can still be opened，You can also book 188bet game franchise hotels from the OTA platform，But its brand value has also dropped to freezing point。Even if 188bet game makes a comeback，It is also difficult to rise again in the Chinese market。

Can 188bet game survive after being listed?

188bet game still loses hundreds of millions of dollars，Can I survive being listed?？

Breaking down the shareholders behind 188bet game，Except 188bet game founder Ritesh Agarwal holds 33 shares.15%，is the second largest shareholder。Masayoshi Son’s SoftBank holds 188bet game 46.62% shares，Deserved to be the largest shareholder，The remaining shareholders include not only Sequoia Capital、Lightspeed Venture Capital and other top investment institutions，Also Airbnb、Microsoft、Huazhu、Didi (invested in 188bet game through its affiliated company Star Virtue) and other well-known companies。

It’s worth noting，Microsoft invested US million in 188bet game in August this year at a valuation of US billion，This is also 188bet game’s last round of financing before its IPO。

Although the financing amount is not large，But it is crucial for 188bet game。Originally due to the impact of the epidemic，188bet game’s global business has been hit to varying degrees，This has also caused its valuation to rise and fall，Microsoft’s investment is equivalent to helping 188bet game stabilize its valuation at US billion，It can be said that Lee Tae Hee breathed a sigh of relief before going public。

However，Listing also means that some existing investors will sell 188bet game shares，In exchange for real money and silver income。

Judging from the prospectus，SoftBank, the largest shareholder, plans to sell 188bet game shares worth approximately 1.USD 7.9 billion，The other three companies that will sell 188bet game shares are A1 Holdings (an entity of Southeast Asian taxi-hailing app Grab)、Domestic hotel group Huazhu and Indian company Global Ivy Ventures，The value of each of the 188bet game shares sold was US.96 million、US.12 million and US.6 million。

188bet game founder Li Taixi said that he will not sell his shares in this IPO。It’s worth noting，Lee Tae Hee has also invested billions of dollars in companies through his personal name on many occasions。

2019，188bet game failed due to global expansion，When falling into huge losses，No investor dares to continue giving it money。For this，Lee Tae-hee from a consortium of Japanese financial institutions (including the largest investment bank in Japan、Securities companies Nomura Holdings and Mizuho Group) obtained loans of US.0 to 2.2 billion，To invest in 188bet game，Transactions include new shares and purchase of old shares from existing investors。

In other words，SoftBank’s vision at this time、Sequoia India、A group of old shareholders such as Lightspeed have successfully cashed out some of their shares。It’s 2020，Li Taixi invested another US0 million in 188bet game，His personal shares have also increased from the original 10% to the current 33%.15%。

You can see it here，Starting from 2019，The primary market has maintained a cautious attitude towards 188bet game，Except SoftBank，It will be difficult for 188bet game to get money from other investment institutions。This may also be the reason why 188bet game is in urgent need of listing，It needs to continue financing from the secondary market to continue its life。

When the primary market is no longer optimistic about 188bet game，Will the secondary market still recognize 188bet game?？

Currently，At least Microsoft still recognizes 188bet game’s long-term value，After investing in 188bet game，Both parties announced a strategic alliance，will jointly create“Next Generation Travel、Hotel Products and Technology”。188bet game will develop smart guest room solutions based on Microsoft Azure cloud services、Virtual assistants and artificial intelligence price prediction and other products。

Microsoft’s investment，It can be said that it kills two birds with one stone，Not only can you get huge returns after 188bet game’s successful IPO，We also found a big customer for our cloud service product。

But financial investors look at the company’s performance and profit expectations，188bet game is obviously unable to give a satisfactory answer at present。

Although 188bet game said that it will start from the third quarter of fiscal year 2021，Operation scale has begun to recover，However, the epidemic still severely affected 188bet game’s global expansion plan。Prospectus display，188bet game has focused on India、Southeast Asia、Europe and other well-developed regions，China、Japan and other areas with serious losses have significantly reduced their scale。

In order to improve profitability，188bet game also changed the minimum guarantee model to a revenue sharing model，At the same time, it also increased the layout of high-end hotels。

Everything 188bet game does，They all revealed to the outside world that they are constantly improving their profitability。But the core problem is，188bet game has not yet established a sustainable and profitable business model，This may significantly reduce the enthusiasm of the secondary market。

What’s more important，Even if 188bet game successfully IPOs and obtains US.2 billion in financing，But at the rate of loss of US0 million last year，This money can extend the life of 188bet game for at least two years。

Listed，Maybe it can extend the life of 188bet game in the short term，But whether we can survive in the future，It still depends on 188bet game’s own hematopoietic ability。