What is Temu Market Value?

Let’s recall the Super Bowl earlier this year. In February 2024, Temu ran three short advertisements, which reportedly cost them a total of $21 million.

After the Super Bowl, they reportedly spent another $15 million in ads, giveaways, and other marketing campaigns.

These numbers left people asking questions. How could a company established in 2022 afford such a huge amount of ad spend? What is Temu’s market value? What is Temu’s net worth in 2024? How big is this platform? Let’s find out.

What is Temu?
- What Makes Temu Unique
What is Temu Market Value?
How Temu Grew So Fast
Frequently Asked Questions
Conclusion: Shop Temu
Recommendations
References

What is Temu?

Before we delve into the discussion around what is Temu’s market value and Temu’s net worth in 2024, let’s discuss a little about Temu and what it has to offer.

What Makes Temu Unique

Despite the existence of several e-commerce platforms, each platform and app has its unique features. Some customers may pick AliExpress over Temu, while others may pick Temu over Amazon. Here are some reasons Temu users pick it over other online shopping platforms:

Heavy discounts on items. Reports indicate that products on Temu are even cheaper than products on AliExpress.
Free shipping on some items
Different available payment methods
Variety of brands and vendors
Games to play to earn rewards

Also read: Is Temu Real or Fake? | Users Honest Reviews

What is Temu Market Value?

Understanding Temu’s market value offers insights into its performance, competitive edge, and growing influence in the online retail space. This information is particularly useful for potential investors.

This section will answer the question, what is Temu’s market value, its parent company’s financial standing, and what are the factors driving its exponential growth?

So, what is Temu’s market value? Temu’s market value, as of the time of publishing this piece, is undisclosed, owing to the fact that it is a privately held company. However, its parent company, PDD Holdings, has a net worth of $128.79 billion.

“Temu’s parent company, Pinduoduo, generated $34.8 billion in 2023. Temu is still a very small part of the company’s portfolio.

— Business of Apps

Within six months post-launch, Temu hit about $20 billion in annual sales and was projected to reach over $50 billion by the end of 2024. Other key indicators of Temu’s market value include:

Monthly revenue of $192 million as of 2023
Yearly revenue of about $6 billion
Over 80 million active users as of 2024
20 million app downloads
16 million monthly active users
10 million transacting customers
Average order value of $35

How Temu Grew So Fast

We may not know specifically what the Temu market value is. However, it’s easy to see that Temu’s growth was rapid. From a monthly revenue of $3 million when it launched to over $190 million just a year after launch.

That’s not all; Temu started with about 5 million U.S. users in 2022, and by 2023, it hit over 100 million users. In fact, in just four months post-launch, Temu overthrew its competitor, Shein, by garnering over 40 million visitors between November and December 2022, according to Sensor Tower.

So the question on everyone’s minds is, how did Temu attain this growth? This section will analyse the key strategies Temu employed to get to its current net worth and market value.

Pumping Billions into Advertising

One of Temu’s prominent strategies is aggressive advertising. They don’t hold back when it comes to running online and offline ad campaigns. They understand the saying that to get money, you have to spend money. And so billions were spent to penetrate the e-commerce industry, making it one of the top e-commerce platforms.

Also read: Is Temu Cheaper than Aliexpress?

Temu had the advantage of a parent company and investors that were able to sponsor its ad goals. In its first month post-launch, Temu reportedly spent a total of RMB 1 billion, approximately $140 million, on marketing.

Their advertisements during the Super Bowl alone cost over $20 million. However, the spending paid off, as their visibility spiked tremendously after those ads. According to Tech Buzz China, Temu had over 70 million new web visitors in February.

“On the 12th of February, during the Super Bowl broadcast, Temu broke two records when its ‘Shopping like a billionaire’ advert aired in the first and third quarters of the game. It became the youngest brand to ever advertise during the Super Bowl (Temu had only been 5.5 months old) and paid the highest fee per second ever (allegedly $14 million for two 30-second ads).”

— Tech Buzz China

Here is one of the ads Temu ran during the Super Bowl:

But Temu didn’t stop at commercial ads during the Super Bowl—they also launched a game called Shake & Cheer, where a total of $10 million was given away to winners.

Also read: How Does Temu Shopping Works?

Apptopia also reported that Temu paid to get to the top of listings and app store searches, pulling it above Shein in shopping app charts.

***Temu at the top of most downloaded shopping apps on App stores.***
**Source**: **MobiLoud**

Email Marketing

Customer acquisition is important, but it’s also important to play the game of customer retention. Temu understood this and began to channel money into email marketing to remind customers to shop on Temu for exclusive discounts. Their email campaign was just as aggressive as their initial ad campaign. Users were receiving up to four emails in a day.

**Screenshot of emails a Temu user received within a few days.**

Gamification

In 2022, Temu added games to its app and website. These games, such as Free Gift, Daily Gift Box, Earn Credits, Redeem Cash, Lucky Flip, and Farmland, allowed users to earn discounts, free items, and cash.

All players had to do to claim their rewards was invite friends to Temu or log in multiple times a day. While players had fun with the games, Temu was using this strategy to gain customers and build retention rates. Reports from a16z indicate that within four months post-launch, Temu was topping Wish, AliExpress, and Shein in customer retention.

Frequently Asked Questions

How much money does Temu make per day?

There is no available data on how much Temu makes per day. However, their yearly revenue is about $6 billion.

How much does Temu make a year?

According to WIRED, Temu is making more losses than profits at this time, as they lose about $30 on each order, cumulating to over $500 million per year. They also spend billions on advertising. However, reports indicate that Temu’s yearly revenue is about $6 billion.

What is Temu’s net worth in 2024?

While Temu’s net worth is undisclosed, its parent company, PDD Holdings, is valued around $128.79 billion.

Conclusion: Shop Temu

With the continuous market growth of Temu, it’s easy to tell that this platform is about to skyrocket in the coming years. So, position yourself for the future! Shop Temu! Invest in Temu! And watch it grow into one of the biggest online shopping platforms in the world.

Disclaimer: This is an educational post and not a promotional one, and it only reflects the opinion of the writer based on the information available.

This is not a substitute for financial advice; hence, Silicon Africa Technology will not be responsible for any losses incurred as a result of investments made on the platform. Readers are strictly advised to do their due diligence before investing.