From Microsoft to Google: How the Founder of "Temu" Built an Empire to Rival Amazon and Alibaba

From Microsoft to Google: How the Founder of "Temu" Built an Empire to Rival Amazon and Alibaba

Colin Huang has often held the title of the richest man in China (Reuters).

Although Colin Huang’s reign as the richest man in China was brief—achieving the title in early August and losing it before the month’s end—this does not signal the collapse of his empire. Instead, it marks the rise of a billionaire who could climb the ranks of Forbes' wealthiest in the coming years.

While the Temu online store, which sells affordable products, has generated massive global profits, Huang’s ascent to China’s wealthiest wasn’t solely due to Temu. His success is also tied to Pinduoduo, another popular Chinese e-commerce platform he owns.

However, Pinduoduo was also the reason for his financial decline, as the company's stock dropped by 25%, leading to a $14.1 billion loss. Huang’s net worth fell to $35.2 billion, dropping him to fourth place in China’s wealth ranking and 45th globally. So how did Huang rise so high in an e-commerce world dominated by giants like AliExpress and Amazon?

Before turning 20, Huang managed to access the internet, joining a small group of students in China (Getty).

Humble Beginnings

Born in 1980 in Hangzhou, Zhejiang Province, the same city that Alibaba calls home, Colin Huang was the son of factory workers. Despite his modest upbringing, his talent for mathematics attracted the attention of his teachers, one of whom encouraged him to take the entrance exam for the prestigious Hangzhou Foreign Language School.

Huang succeeded in entering the school, and he credits his time there as a significant factor in his success today. In a blog post on Medium, he mentioned how the school’s Western-based philosophy had a profound influence on him.

By the age of 20, Huang had gained access to the internet, a rare privilege for Chinese students at the time. This opened up international connections and deepened his passion for computers and technology. His skills earned him a Milton Foundation scholarship, founded by Bill Milton, the creator of VeriFone.

Huang’s first job was an internship at Microsoft’s Beijing office, and he later moved to the company’s headquarters in Redmond, Washington, where his salary increased significantly. His thirst for learning and growth led him to target Google, which was still a startup at the time. Eventually, he joined the company as part of its software development team before transitioning to product management, coinciding with Google’s attempt to enter the Chinese market—a venture Huang contributed to.

In 2006, Huang returned to China to help Google establish its presence there. Although the endeavor faced many challenges, Huang gained valuable experience that paved the way for his entrepreneurial journey.

Huang returned to China in 2006 as part of Google's efforts to launch in the country (Reuters).

A Series of Startups Before the Big Break

Huang left Google in 2007 and worked for various companies while launching his first online store, Ouku, which remains active under new ownership after Huang sold it in 2010. He then founded Leqi, a company aimed at helping foreign brands break into the Chinese market. According to Pinduoduo’s website, Huang also founded Xinyoudi, a game development company, though there’s no clear record of this company today.

In 2020, The Financial Times dubbed Huang “the secret internet king of Shanghai” due to his wide-reaching internet ventures across multiple sectors.

By 2015, Huang had founded PDD Holdings, the parent company of several e-commerce platforms, including Temu and Pinduoduo. That year, he secured an $8 million investment, followed by a $100 million infusion by the end of the following year.

At its core, Pinduoduo was an e-commerce platform, but with a unique twist—shopping felt like a game. Users participated in challenges to earn discounts, and the platform’s rapid success led to its listing on the NASDAQ in 2018. Unlike most entrepreneurs who eagerly attend their company’s IPO, Huang was notably absent from the event. During this period, he had developed a deep interest in Buddhism and, by 2020, stepped down as CEO, passing the role to Chen Lei, one of the company’s co-founders.

Marketing-Driven Strategy

In September 2022, PDD Holdings launched its discount shopping app Temu in the U.S. Through clever marketing strategies, including a Super Bowl ad, Temu skyrocketed to the top of the download charts on Android and iPhone platforms.

Temu primarily offers a wide variety of discounted products from Chinese retailers, coupled with engaging marketing slogans like Shop like a millionaire or Hurry before it sells out. While AliExpress offers similar services, Temu focuses more on enhancing the user experience and tailoring it to American and European customers.

Within a short period, the app’s success helped boost PDD Holdings’ revenue to over $34.9 billion in 2023, a 90% increase from the previous year, putting it in direct competition with major U.S. retailers like Target and Walmart.

Legal Challenges

Temu has faced legal challenges similar to those confronting other Chinese apps like TikTok. Some users have filed lawsuits against the company, accusing it of selling user data and large-scale data theft. These accusations mirror those leveled against TikTok.

Currently, a class-action lawsuit has been filed against Temu in Illinois over data breaches. Additionally, U.S. senators have called for investigations into the app, citing concerns about privacy, child labor, and the exploitation of U.S. laws.

Today, Colin Huang ranks fourth among China’s richest and 45th globally. He has since shifted his focus to creating a platform that promotes healthy food and protects natural farmlands. If he achieves the same level of success with this initiative as he did in the past, it could signal the birth of yet another empire.