Chinese budget e-commerce platform Pinduoduo’s shares plunged in New York after it reported that its third-quarter loss widened by 112.6% from the year earlier as the company continues its rapid expansion.

The stock fell 18.2% on Nasdaq before the market opened and was down more than 23% by early afternoon in New York.

The company reported a quarterly loss of 2.3 billion yuan ($326.7 million). Revenue reached 7.5 billion yuan, in line with analysts’ estimates.

Average monthly active users grew 85% to 429.6 million in the three months ended September. Active buyers in the 12 months ended September rose 39% to 536.3 million. Annual spending per active buyer increased 75% to $219.20 in the 12 months.

Founded in 2015, Pinduoduo has emerged as the chief rival to market leader Alibaba Group Holding in China’s trillion-dollar online retail market. The company, which went public on Nasdaq in July 2018, made its name using a “team purchase” model that offers consumers steep discounts if they invite friends and relatives to form a “team” to shop.

The company’s sales and marketing expenses surged 114% during the quarter to 6.9 billion yuan.

Contact reporter Tang Ziyi (ziyitang@caixin.com)