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| The Temu App |
Temu's market value is not publicly available because it's a privately held company. However, according to Business of App's Revenue and Statistics of 2024, Temu's gross merchandise volume hit $15.1 billion in 2023, with the majority coming in the second half of the year.
In this article, we are going to discuss the Temu’s current market valuation, how the e-commerce company grow fast, why it’s pumping billions into advertising, key statistics of the company and some frequently asked questions about the company.
- Established in September 2022, Temu is a Chinese-owned company and a subsidiary of Pinduoduo (PDD) Holdings.
- Temu saw its gross merchandise volume (GMV)—the total value of goods sold before expenses—reach $15.1 billion in 2023, with most of the sales happening in the second half of the year.
- The company’s GMV has grown rapidly over the past 18 months. Starting at $290 million in 2022, it rose to $2.9 billion in the first half of 2023, $12.3 billion in the second half of 2023, and an impressive $21.6 billion in the first half of 2024.
- In the United States alone, Temu has over 80 million active users as of 2023. In the U.S., U.K., and Nigeria, Temu has gotten the highest number of downloads on Google Play store and Apple App Store.
What is Temu Market Value?
Many people are willing to know Temu Market Value because it gives insightful knowledge of its performances, competitive edges and growing influences in the online retail industry. Meanwhile, it’s important to note that Temu’s valuation is still currently undisclosed as the e-commerce company is not a public limited liability entity.
However, Temu’s parent company, Pinduoduo (PDD) Holdings—has a net worth of $128.79 billion as of 2024. In 2023, PDD Holdings generated $34.8 billion in annual revenue. Furthermore, Temu—within six month of post-launch in the US and UK—generated about $20 billion revenue in annual sales and was expected to exceed $50 billion by the end of December, 2024.
Analysts believe that Temu is still a very small part of PDD Holdings portfolio. Speaking of PDD Holdings revenue growth, the company experienced significant revenue growth between 2017 and 2023. The company’s revenue growth started at just $0.26 billion in 2017 and increased steadily each year. It experienced $1.94 billion revenue growth in 2018, $4.33 billion in 2019, and $8.79 billion in 2020.
The growth continued with $14.53 billion in 2021 and $19.19 billion in 2022. In 2023, PDD Holdings revenue growth nearly doubled to $34.8 billion. The launch of Temu is of the factor that contributed to the company’s urge growth between 2022 and 2023.
Temu has grown very quickly over the past 18 months. Its gross merchandise volume (GMV)—which means the total value of everything sold before taking away expenses—was $290 million in 2022. This jumped to nearly $2.9 billion in the first half of 2023 and then soared to $12.3 billion in the second half of 2023. By the first half of 2024, it had reached an incredible $21.6 billion, showing how fast the company is expanding.
Temu has achieved impressive growth with monthly revenue of $192 million in 2023, adding up to about $6 billion for the year. By 2024, it had over 80 million active users, 20 million app downloads, and 16 million people using the app each month. Among these, 10 million are customers actively making purchases, with the average order worth $35. These numbers highlight how popular and widely used the platform has become.
Temu Unique Growth, Explained
Many people has been asking me that “why did Temu grow so fast?” Some even extends questions and asked that “is it about the Temu aggressive advertising?”
Well, the aggressive advertising campaign participated to Temu’s growth. Despite that, some customers still prefer other popular e-commerce platforms to Temu. For example, I’ve seen a shopper that prefers to shop on AliExpress and Amazon than shop on Temu App.
So, everyone has one’s unique taste, experience and demands. With that being said, here are some reasons shoppers prefer to shop on Temu App:
- Eye-catching Advertisement: Many people want to try Temu products to see if they’re truly legit. In addition, Temu has partnered with many social media influencers, showing off the e-commerce’s products as free gifts gotten from the company. This entice many people into buying one or two from the company.
- Heavy discounts and promotions: Sincerely speaking, Temu gives 3 free gifts to new users with condition to buy certain amounts of products before they get their free selected items. Many reports have also suggests that Temu’s products are cheaper than products on Amazon and AliExpress. However, Temu attributed its cheap products to the fact that it ship directly from manufacturers and no middleman is involved.
- Free shipping: Another reasons shoppers prefer to shop on Temu is that the company offers free shipping. However, the express shipping on the platform involves fees—but delivery is swift.
- Many Brands and Vendors: There are many brands and vendors on the e-commerce platform. So, shoppers are not limited to few vendors to buy from. As earlier stated, Temu get its products directly from manufacturers—which many 80% of them are in China. These allows many cheap brands in China to compete on the platform.
- Lastly, users can play games—such as spinning games—to win free items on Temu App. Temu app also offer easy-to-use payment method for each users in various countries.
How Did Temu Grow So Fast?
From the analysis we’ve provided in this article, it’s clear that Temu’s growth is rapid. Despite the fact that the e-commerce site estimated market value has not been publicly disclosed, we can see that it has a monthly revenue of $3 million when it launched in 2022 to over $190 million in 2023–just a year after launch.
Temu grew quickly by offering extremely low-priced products, often less than half the cost of similar items on Amazon, Jumia, SHEIN, AliExpress and other competitive e-commerce sites.
Expanded to parts of Europe in 2023, Temu attracts users with a wide range of products, discount codes, and freebies. Its strategy has made it the most downloaded app in the US for much of 2022 and 2023—showing that many people are using and buying from the app.
That’s not all, when Temu started in the U.S. in 2022, it’s about 5million in user base. However, the platform has more than 100 million users as of 2024. In just four months after Temu was launched in the U.S., the site surpass it competitor SHEIN with over 40 million unique visitors between November and December 2022.
Furthermore, Temu’s growth can also be attributed to the following factors:
Billions of Advertising Investment
If you have not been seeing Temu advertisements, where have you been? One of Temu’s strategies to growth is the aggressive investment in digital advertising technology. Temu priorities both online and offline advertising campaigns.
In other words, Temu spends billions of dollars on advertising campaigns to penetrate and saturate the e-commerce market with products at under half the price of similar items on Amazon and other e-commerce stores. This has made the platform to be on-top of other e-commerce platforms in little time.
Temu became really popular because it spent lots of money on advertising to let people know about it. Its parent company and investors helped pay for this. In its first month, Temu spent about $140 million on adverts, including more than $20 million for ads during the Super Bowl.
The Super Bowl is a big American football event, and millions of people watch it. Temu showed two ads during the game, saying, “Shopping like a billionaire.” This made it the youngest company ever to advertise during the Super Bowl, as Temu was only 5 and half months old.
After these ads, lots of people visited Temu’s website—over 70 million in February! This big effort made Temu very visible to shoppers.
However, Temu didn’t stopped its digital advertising on the SuperBowl, the company further introduced a game called Shake and Cheer—where a total of $10 million was given away to winners.
Lastly, Apptopia—a data intelligence platform that enables brands to analyze critical competitive signals and gain insights across mobile apps and connected devices—reported that Temu paid mobile app stores to get to the top of listings and searches.
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| Temu top the list of shopping app carts on app stores |
This helps Temu app to get above its competitors including Shein, Amazon, Alibaba, Walmart and others in shopping app charts.
Offers as Games
Games offering in the Temu app is one of the factors that contributed to the company’s widespread growth. Few months after its launched, the e-commerce started adding games to its app and website.
Now, Temu app and website features games including Daily Gift Box, Redeem Cash, Earn Credits, FarmLand, Free Gifts and Lucky Flips. These games allow new and existing shoppers on the platform to earn discounts on products, free items and bonuses to their Temu wallet/balance.
Email Marketing
On average, I receive about 3 to 5 Temu Emails per day. Temu strategically acquired customers through advertisements right? The company is now using Email Marketing strategy to retain the acquired customers. Awesome yeah?
Well, that’s what Temu does. The company also channels money into Email Marketing to remind acquired customers to shop on the e-commerce website. Temu’s Email Marketing is also massive as its ad-campaign. Many customers have reported that they get at least four Temu’s E-mail per day.
FAQs
Is Temu Profitable?
We cannot conclude that Temu is profitable as the company's current operating model is unsustainable. Additionally, Wired reported that Temu is losing approximately $30 per order to send customers cheap products as the company is offering free shipping from China to your country.
So, we can say that Temu's low profit margin are due to selling products at steep discounts and its aggresive marketing strategies make it easy but really expensive to acquire customers.
What is Temu Net Worth?
As of 2024, Temu Net Worth is estimated to $1 billion. Its parent company, PDD Holding, has a net worth of $128.79 billion.
How much money does Temu make per day?
Temu's daily gross merchandise value (GMV) in January 2024 was $80–$100 million. In Q2 2023, users spent an average of 18 minutes per day in the Temu app. Lastly, in late September 2023, shoppers spent a total of 448 million minutes per day on the Temu app.
How much does Temu make a year?
In the first six months of 2024, Temu's sales were estimated to be $20 billion, which is higher than its 2023 annual sales of $15.33 billion. Temu's long-term goal is to increase the average order value to $50 and the number of purchases per year to 30. The company also wants to reach $100 billion in revenue and become profitable by 2027.
