Tencent Invests $2 Billion in Chinese Short Video App
Upon the closing of the round, Tencent will hold a 20% stake in Kuaishou.
Tencent Holdings Ltd. (HKEX: 0700) will invest an additional $2 billion in the final pre-IPO round of financing of the Chinese short video app, Kuaishou.
Also participating in the fundraising are Boyu Capital, Temasek Holdings, Sequoia Capital and Yunfeng Capital, according to Chinese business media LatePost. In total, the Series F financing round amounts to $3 billion, the report said.
The new funds would raise Kuaishou's valuation at $28.6 billion and give Tencent a 20% stake in the company, according to the report.
Initially, Tencent was expected to invest up to $1.5 billion and acquire between 30% to 40% of the equity in Kuaishou, as reported by KR Asia in August.
Launched in 2012, Kuaishou has grown to be one of the top short video apps in China, according to a list from the Beijing-based tech media, Pandaily. As of June, Kuaishou had 341 million monthly active users, the report said.