Aiwujiwu

About Aiwujiwu

Aiwujiwu, operating under iwjw.com, was an internet-based real estate brokerage firm established in Shanghai in March 2014. The company was founded by CEO黎勇劲 (Li Yongjin) and co-founder 邓薇 (Deng Wei), both of whom brought extensive experience from the internet industry, having previously held senior roles at Tudou.com. Their prior venture was a ride-hailing platform named "Dahuangfeng Dache," which, despite being acquired by a competitor, provided them with firsthand experience of the rapid pace of mobile internet ventures. This background informed their strategy to apply an aggressive, internet-centric approach to the traditional real estate sector.

The company entered the market with a disruptive online-to-offline (O2O) business model, aiming to overhaul the conventional real estate brokerage process. Aiwujiwu's core strategy was to eliminate physical storefronts, thereby reducing significant overhead costs. It focused on the second-hand housing and rental markets, connecting property owners with buyers and tenants through its online platform and mobile app, which launched in August 2014. Revenue was intended to be generated from commissions on property transactions. To rapidly gain market share, the company implemented an aggressive pricing strategy, initially offering zero commission for tenants and a reduced 1% commission for second-hand home sales. This was coupled with high-profile advertising campaigns and significantly higher base salaries and commissions for its brokerage agents to attract top talent from competitors.

This capital-intensive strategy was fueled by substantial venture funding. Within 18 months of its founding, Aiwujiwu raised approximately $350 million over five funding rounds from prominent investors including Temasek, GGV Capital, and Sequoia Capital China (formerly HongShan), achieving a valuation of over $1 billion. This rapid injection of capital enabled swift expansion into major Chinese cities like Beijing, Guangzhou, and Shenzhen. At its peak in 2015, the company captured a significant share of the rental market in Shanghai and Beijing. However, the model of low commissions and high operational costs, particularly for agent salaries, proved unsustainable. The company struggled with high cash burn rates and could not achieve profitability. By early 2019, Aiwujiwu had ceased its primary real estate operations, with its website and app becoming non-functional, marking the end of its ambitious attempt to revolutionize the industry.