55tuan

About 55tuan

55tuan, which later operated as WoWo Ltd., emerged as a notable player in China's hyper-competitive e-commerce landscape. The company was co-founded by individuals including James Tan, a Singaporean entrepreneur, and Xu Maodong, who served as Chairman and CEO. Xu Maodong brought a unique blend of experience to the venture, having previously founded the QiLu supermarket chain and a mobile advertising firm, giving him a background in both traditional retail and online marketing. The founding team, which included friends from Tsinghua University, initially launched the business in 2009 as a clone of Meetup.com.

Finding little market traction with its initial concept, the company decisively pivoted in March 2010 into the booming group-buying sector, a market then saturated with nearly 5,000 competitors. 55tuan distinguished itself by focusing on providing a platform for local service merchants like restaurants, movie theaters, and salons to run online branding and sales campaigns. This model empowered merchants with limited resources to better integrate their online and offline activities. The business generated revenue by taking a commission, typically around 5%, from the deals sold on its platform.

The company endured a significant market consolidation period from 2011 to 2012, which saw thousands of rival sites collapse. After an unsuccessful IPO attempt in 2011, 55tuan persevered and successfully listed on the NASDAQ in 2015 under the name WoWo Ltd. with the ticker "WOWO", raising approximately $40 million. By the time of its IPO, the platform had expanded its reach to 150 cities, serving over 105,000 merchant clients and attracting more than 34 million subscribers. Following the public offering, the company shifted its focus from daily deals to becoming a broader marketplace for food suppliers.