Wookpecker International Launches Hong Kong IPO Effor

Key Takeaways:

• Woodpecker International is attempting to list in Hong Kong again, reporting a 6.4% profit drop to nearly 39 million yuan in the first half of the year.
• The company has notable early investors, including entrepreneurs Lei Jun and Yao Jinbo.

Lau Chi Hang

Woodpecker International Inc. operates under the motto: “Maybe we can’t fix feelings, but we can fix everything else.” This motto is intended to resonate with potential users and investors.

The home maintenance platform is making a second attempt to list in Hong Kong after an unsuccessful IPO earlier this year. With hopes of capitalizing on recent market gains, it submitted a new application just before the National Day holiday.

Recognizing the struggle families face with home repairs, Woodpecker aims to offer a solution through its online platform connecting technicians with homeowners needing repairs.

The model is simple: offering one-stop services while earning revenue from contractor fees.

Market Leader

Woodpecker is the largest home maintenance platform in China, holding 2.4% of the market in 2023, according to consultancy data.

Founded by Wang Guowei in 2014, Woodpecker quickly attracted significant investors, including Lei Jun of Xiaomi and Yao Jinbo of 58.com, prompting rapid growth.

Accelerating Growth

With funding, Woodpecker expanded to over 300 cities and tripled its technician base from 7,092 in 2021 to 26,968 by mid-2023.

Transaction values also soared, with revenue jumping from 990 million yuan in 2021 to 2.48 billion in 2022—growing 58.5% annually. However, profits have fluctuated, showing a slight decrease in the first half of 2023 due to rising marketing costs.

The home maintenance market in China is booming, projected to grow from 715 billion yuan in 2023 to 932 billion by 2027, benefiting Woodpecker as digital service usage rises.

Challenges Ahead

Maintaining service quality is a major challenge for Woodpecker, as it acts as an intermediary between customers and technicians. Over 6,000 complaints highlight issues like unfair pricing and service dissatisfaction.

The competitive landscape includes rivals like Wanshifu and Laobandaojia, leaving room for Woodpecker to potentially become the first home maintenance platform listed in Hong Kong. This could enhance its market presence and aid in future consolidation efforts, provided it addresses user confidence in service quality.

This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.