China’s Renren Looking to Hit 200 Million Users this Year

Renren, after a pretty tough couple of months that’s seen the stock come down from an IPO of between $12 and $14 to around $5 today, has joined other Chinese stocks in some of their best rallies of the year.  Renren CEO Joseph Chen pointed out that mobile demand is boosting the user numbers.  This could mark a revolution in the way Chinese users use the social network — mobile has always been a popular form of networking in the East, as proved by the Japanese social networks GREE and DeNa.

Speaking with Bloomberg, CEO Chen discussed that the social networking market in China have entrenched players who are going toe to toe and said that he believed that the monetization potential for China is strong.

Renren is planning to add services like video sharing to help give the mobile users new experiences. The question is how they’re going to monetize more deeply. Facebook has a strong potential with their Facebook credits and LinkedIn recently demonstrated their profitability by selling corporate solutions, but Renren is counting on building the pie before taking their slice, and this may be the reason the stock is down 60% off its IPO.

We’ll keep an eye on Renren and let you know how it goes.