(Yicai Global) Oct. 27 -- China’s e-sports tournament host VSPN raised USD100 million in B-round financing yesterday, led by internet titan Tencent Holdings, indicating that the rapid growth of the country’s virtual gaming sector promises strong returns.

The funds will be used to upgrade VSPN’s operations, perfect all aspects of its e-sports business, develop more derivative products and expand its overseas business, the Shanghai-based company said.

Venture capital firms Tiantu Capital and SIG China as well as short video platform operator Beijing Kuaishou Technology also participated in the financing.

Online audiences for e-sport competitions are starting to outnumber major events on the traditional sporting calendar. For example, more people watched the video game League of Legends’ 2019 World Championship than last year’s finals of the National Basket Association. Sponsors are also now migrating from physical sports events to online ones.

“Commercial sponsorship of professional players of the online battle game Arena of Valor surged to CNY130 million (USD19.4 million) in its second year from just a few million in its first year,” VSPN founder and Chief Executive Officer Ying Shuling told Yicai Global.

“China is leading the global e-sports market,” Ying said. “Audiences of e-sports competitions grew by 80 percent during the Covid-19 pandemic,” he added.

The country has several advantages due to its large user base and the speed at which mobile technologies are upgraded. China should start to set standards for global e-sports as a whole so as to truly activate the sector’s business value, Ying said.

The e-sports arena is also expanding rapidly overseas. VSPN has opened a virtual games venue in Seoul, South Korea. It has also organized competitions in the US, Southeast Asia and the Middle East.

Founded in 2016, VSPN boasts 70 percent market share of premium e-sports events in China and has formed partnerships with 50 percent of overseas top-ranking e-sports competitions. To date, the firm has organized over 10,000 professional virtual tournaments.

Editors: Tang Shihua, Kim Taylor