E-commerce tycoon Colin Huang has become China’s richest man, an index showed on Friday, capping an ascent for the former Google employee whose shopping site Temu has sucked in consumers with its low prices and powerful algorithms.
Huang, the founder of PDD Holdings Inc — which owns Temu and Chinese retail app Pinduoduo — is now worth US$48.6 billion, the Bloomberg Billionaires Index said.
He overtook beverage company Nongfu Spring founder Zhong Shanshan, who had topped the list since April 2021, as the world’s 25th wealthiest person and the richest in China.
Close behind them is tech giant Tencent Holdings Ltd cofounder Ma Huateng, also known as Pony Ma, whose WeChat is often described as China’s “everything app.”
In fourth place is Zhang Yiming, founder of Bytedance Ltd, which owns the massively popular TikTok video-sharing platform.
Huang, born in 1980 in the eastern Chinese city of Hangzhou, was a teenage mathematics whizz and a former employee of Google China. He founded online shopping site Pinduoduo in 2015, which blossomed into one of China’s most successful e-commerce empires — rivaling Jack Ma’s Alibaba Group Holding Ltd.
The app lured in consumers with huge discounts and a vast array of products, offering sometimes staggeringly low prices in a fiercely competitive field.
Its overseas iteration Temu launched in 2022 in the US, where it amassed a loyal consumer base with ultra-low-cost goods made and shipped from China.
Temu’s success dovetailed with persistently high inflation that has pushed cost-conscious consumers to hunt for bargains, and it has since taken off in Europe, Latin America and elsewhere.
Despite only arriving in Europe last year, Temu has said it has on average about 75 million monthly active users in the region.
However, its massive success had drawn accusations of unfair commercial practices and lax safety standards.
This year, consumer groups in Europe said Temu was manipulating shoppers into spending more money, distorting their ability to make “free and informed decisions.”
In April, South Korean regulators opened an investigation into Temu on suspicion of false advertising and unfair practices.
Last month, hundreds of merchants in China demonstrated at an affiliated office in the southern city of Guangzhou, alleging unfair treatment in the sale of their products on the platform.
However, that has done little to dent the success of the firm, with PDD Holdings announcing in May that first-quarter net profit had more than tripled year-on-year.
The firm’s US-listed shares closed at US$138.02 apiece on Thursday, giving it a market capitalization of US$191.68 billion.
