Kuaishou has been reported to have plans to go public in the US in H2 2017
Image Credit: Kuaishou
Though both companies’ spokespersons have been silent on the matter, an anonymous source stated that the investment has pumped the startup’s valuation to “about US$3 billion.”
Having been a popular streaming app among rural communities in China, Kuaishou cited plans to expand abroad, particularly to developing markets such as Indonesia and Thailand.
In a press statement, Tencent Chairman Ma Huateng dubbed the platform as a “dynamic Chinese mobile internet product that resonates with people.”
Kuaishou is said to have 50 million daily active users with five million videos being uploaded each day. It has been experiencing a surge of traffic consumption, which has been reported to exceed that of Weibo and WeChat.
The company is backed by investments from Sequoia Capital, DST, Baidu, and DCM.
Recently, Chinese tech giants Alibaba and Tencent have been investing heavily in video content and services with the hope to push for online advertising revenue.
In its latest financial report Tencent reported a net profit of RMB41.45 billion (US$6 billion) for 2016 (up 42 per cent from the previous year), on revenue of RMB151.94 billion (US$22 billion), a 48 per cent increase.
The revenue growth is attributed to stunning performance of smartphone games, paid digital content, social and performance advertising, and payment-related services.
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