EPWK Holdings Inc., a Chinese crowdsourcing platform that connects businesses with freelance workers, is raising its IPO fundraising target by about a third, signaling a bullish outlook for the company and the country’s burgeoning gig economy.
EPWK, initially aiming to raise $12 million through its IPO in February 2023, has now revised its plan to raise up to $16.5 million. This move comes as U.S.-listed China stocks have experienced a recent rally, fueled by optimism surrounding Beijing’s efforts to stimulate the country’s slowing economy.
The company’s decision to increase its IPO target underscores its confidence in the growth potential of China’s gig economy.
While the COVID-19 pandemic initially impacted the crowdsourcing market, demand has since rebounded, and independent research projects that the market could reach $656 million in revenue by 2025.EPWK’s platform offers a range of services, from design and development to business support, and it has facilitated $349 million in gross merchandise value (GMV) across 986,000 projects in 2023. The company has seen steady revenue growth, with its net loss widening slightly over the past year, but this is largely attributed to the company’s commitment to investing in its platform’s growth.
EPWK’s success can be attributed to several factors, including:
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The increasing preference for gig workers among businesses.
As companies look to save costs and gain flexibility, they are increasingly turning to freelancers and independent contractors.*
A growing pool of young job seekers.
China’s youth unemployment rate remains high, with many young people seeking alternative work arrangements that offer flexibility and a better work-life balance.*