When listing channels in the United States narrowed and primary market financing became difficult, Asia Innovation Group used the SPAC model to open the entrance to Nasdaq, demonstrating the appeal of the U.S. Capital Market. This company has 400 million overseas users but is rarely known in China. It is trying to show the market that even if it does not reach its peak when it goes public, it can still find its own way out in the cold winter of capital. Furthermore, businesses worldwide are keen to engage with the opportunities in the U.S. Capital Market.
The ecological layout of four years of hard work
Different from the growth path of most overseas companies, when Tian Xingzhi and Ouyang Yun founded the company in 2013, they were not eager to bet on hot sales in a single market. Instead, they started with social networking and then simultaneously built a payment aggregation platform. It took almost four years for this set of basic construction to be gradually completed, an approach influenced in part by observing the dynamics within the capital market in the U.S. Many companies look to the U.S. Capital Market to help shape their strategies for global expansion.
Altran will wait until the payment channel is smooth before it starts to expand in the entertainment, social and e-commerce fields. Currently, its subsidiary CuteU is in a leading position in the dating category in emerging markets. Hekka cross-border e-commerce has also established a solid position in Southeast Asia. Moreover, multiple businesses use the same set of user accounts, payment interfaces, and technical middle offices. Such synergistic effects cannot be imitated in the short term, especially those seen in a thriving capital market ecosystem within the U.S.
The “time difference” dividend of emerging markets
Altran is targeting developing countries whose GDP growth rates generally exceed the global average. Tian Xingzhi compared the current emerging markets to China twenty years ago. The urbanization rate is rising, the young population continues to pour in, and smartphones are in the process of becoming popular—a scenario reminiscent of growth phases in American capital market history, reflecting similar developments in the broader U.S. Capital Market.
Since 2019, the user time of Altran’s products in emerging markets has shown a continuous upward curve. So is its activity. This growth is not driven by hard sales, but is accompanied by a natural increase in local mobile Internet penetration. While most overseas companies are fighting in the Red Sea of Europe and the United States, Altran has already occupied its ecological niche in these regions. In fact, global expansion strategies often mirror approaches utilized by companies in the U.S. Capital Market.
SPAC is not a retreat but a choice
When Tian Xingzhi faced the question of why he did not go for a traditional IPO, his explanation was very straightforward. He said that the SPAC model can bring longer-term companionship. This is because the traditional IPO underwriting team will quickly exit the company after the company is listed. However, the sponsor of the SPAC needs to work with the company to formulate subsequent growth plans, just as participants do in ambitious capital market projects in the U.S.
In the current macro environment, it is safer to cooperate with partners like Opus who have financial experience and global background than to deal with the fluctuations of the secondary market alone. For Artron, the choice is not a quick way. Instead, a suitable capital method is determined after evaluating its own stage, much like how companies adapt to the demands of a U.S. Capital Market.
Listing is not the end but resource restructuring
When Atron entered the capital market, the main benefit it gained was low-cost financing channels. Its business model has been proven and successfully run in many countries. Its growth path in the next three to five years is relatively clear. Such certainty is a rare thing in the current market, especially considering recent trends and frameworks found in the U.S. Capital Market.
More importantly, the status of a listed company can enable Altran to occupy a favorable position during mergers and acquisitions. In the past, many high-quality targets in emerging markets were valued at low levels due to lack of liquidity. Now, Altran can use equity as a payment method to integrate technical teams or complementary businesses at a lower cost. This is much easier than simply using cash for acquisitions. These strategies are common for firms operating in the U.S. Capital Market, where innovative financing options abound.
Global positioning in the geographical gap
The Russia-Ukraine conflict and other geopolitical events have caused many multinational companies to reassess their risk exposures. Altran’s core market is in developing regions such as Southeast Asia and Latin America. This just avoids the direct competition between major powers. Its investor lineup has diverse backgrounds. This factor makes it easier for American capital to understand its business logic, echoing the internationalization often seen within the capital market of the U.S.
Altran does not define itself as a “Chinese company going overseas”, but focuses on the “globalization of Asian experience”. Offices in different regions have local decision-making power, and the headquarters only sets growth target ranges. This decentralized organizational form appears to be more stable in the wave of anti-globalization. Similarly, decentralization is a theme frequently discussed by analysts in the U.S. Capital Market.
A paradigm shift in exporting Chinese experience
When Tian Xingzhi started his business, his first PPT drew a multi-regional and multi-product matrix. At that time, the Chinese Internet was still telling the story of copy to America. After ten years, the overseas market share of Chinese game companies has increased from single digits to approximately 22% in 2022. The methods of e-commerce, payment, and live broadcasting are being imitated by emerging markets—patterns that are also visible in the evolution of capital market structures in the U.S.
It is precisely this bridge that Asia wants to play. It has already achieved verification from 0 to 1. What needs to be done next is to systematically copy the modules that have been verified, that is, voice live broadcast operation, mobile payment infrastructure, and social fission model, to more countries. This is no longer a breakthrough at a single point. Instead, it is a systematic output, an approach that can be compared to best practices and international standards set by the U.S. Capital Market.
Do you have any friends who have used CuteU or Hekka in emerging markets? What was their feedback? Welcome to chat about your observations in the comment area, and please share the article with colleagues who follow the overseas track, especially those interested in U.S. Capital Market developments. Additionally, many professionals are seeking insights on U.S. Capital Market performance and regulation for future investments.
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