Industry: Creative Trusting Service Platform
Region: CN 🇨🇳
Expected Valuation: $30 million
IPO Date: 2023 (expected)
EPWK Holdings Ltd.
Key Company Facts
|Industry||Creative Trusting Service Platform|
|Founders||Huang Guohua, Huang Zhinan|
|Number of employees||295|
|IPO Date||2023 (expected)|
|Number of investors||5|
|Total funding||$27.1 billion USD|
|Number of account holders||23 million|
|Valuation estimate||$30 million USD|
Company Overview & History
EPWK Holdings Ltd., incorporated in the Cayman Islands in March 2022, is a holding company with operations in China conducted through EPWK VIE and its subsidiaries.
The company was founded to develop an online freelancer service marketplace in China, with Guohua Huang serving as its founder, Chairman, and CEO.
The platform was launched in 2011 and has grown significantly since. It aims to connect businesses with talent, with offerings in several categories including design, software, marketing, business writing, interior decoration, life services, and business services.
As of December 31, 2021, the platform had over 23 million registered users, with an average of 10.13 million active users per year.
In the fiscal year ending June 30, 2022, EPWK Holdings reported annual revenue of $12.81 million, marking a growth of 12.71% from the previous year. The company had a total of 295 employees, which implies revenue per employee was $43,428.
However, the selling expenses as a percentage of total revenue have been rising, from 23.6% in the fiscal year ending June 30, 2021, to 33.6% in the fiscal year ending June 30, 2022.
EPWK Holdings operates an online marketplace where businesses can find and contract with freelancers for various services. The platform is used by buyers seeking talents for their jobs and sellers offering different skills.
The company markets its services online and through various other means, including word-of-mouth referrals. It is the second-largest freelance contract labor service of its kind in China, generating a total gross merchandise value (GMV) of $804 million over 2.23 billion projects from 2019 to 2021
One of the risk factors identified for EPWK is the increase in selling expenses as a percentage of total revenue, which could impact profitability if it continues to rise.
Additionally, as the company is planning an IPO, there are risks associated with the dual-class share structure that it proposes.
The founder and Chairman, Guohua Huang, will hold Class B shares with fifteen votes per share, potentially concentrating voting power and limiting other shareholders’ influence. It should also be noted that the S&P 500 Index no longer admits firms with multiple classes of stock into its index
EPWK Holdings sees potential for growth in expanding its service categories and building up a flagship brand store system. The company also plans to develop Software as a Service (SaaS) tools, upgrade its personalized task recommendation engine, and offer online digital business solutions.
Moreover, it is considering new product and service offerings like NFT projects, original copyright content platforms, and a creative fund for high-quality service providers.
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