Oct 2024
Temu’s parent company PDD Holdings Inc was founded by now 43 year old Colin Huang in 2015.
Temu was established in September 2022 based in Shanghai. It subsequently listed on the NASDAQ and relocated its HQ to Dublin, Ireland in 2023.
Colin Huang has a master's degree in computer science from University of Wisconsin, interned at Microsoft in both Beijing and Seattle before beginning a career at Google in the U.S. in 2004.
The share price of Temu’s parent company PDD Holdings Inc has at times been volatile. As at 30 August 2024, their listed shares had plummeted 33% during the previous week and 30% in the third quarter. Global hedge funds held 102.8 million shares in the company and Reuters reported that the 30% fall in share price between the end of June and August 29 would have wiped out roughly US$4b from those share positions.
There is growing international concern about the provenance of some of the products sold via Temu. It has proved nigh-on impossible to determine if products have been produced using forced labour.
Huang may be mindful of what can happen to China businessmen who who become exceedingly wealthy or who embarrass their government à la Jack Ma of Alibaba fame and Hui Ka Yan of Evergrande Group ill-repute et al.
Indonesia’s Minister of Communications and Informatics, Budi Arie Setiadi is reported to have declared earlier this month; “Temu cannot enter Indonesia because it damages the economy, especially Indonesian micro, small and medium enterprises. We will not give it a chance." He went on to say "We want the digital space to be filled with things that make society more productive and profitable. If it is detrimental, what's the point? We will ban it. Our micro, small and medium enterprises will be destroyed if left unchecked."
Temu’s business model of selling products directly from factories to consumers runs contrary to Indonesia’s trade regulations which requires an intermediary or distributor.
Temu has previously attempted three times to register to operate in Indonesia. One such application was denied because there was already a business using the name Temu in Indonesia.