Tencent Pumps USD633 Million Into IPO-Prepping Live Streamer Douyu
Dou Shicong
DATE:  Mar 08 2018
/ SOURCE:  Yicai
Tencent Pumps USD633 Million Into IPO-Prepping Live Streamer Douyu Tencent Pumps USD633 Million Into IPO-Prepping Live Streamer Douyu

(Yicai Global) March 8 -- Live-streaming platform Douyu has bagged CNY4 million (USD633 million) in funding from tech stalwart Tencent Holdings Ltd. as it mulls an initial public offering overseas.

The injection was Tencent's third in Wuhan Douyu Network Technology Co., the company behind the specialist e-sports streaming service, reported Touchweb, a news channel on Tencent's social media platform WeChat. The company, the first unicorn hailing from the capital of Central China's Hubei province, had secured CNY3 billion prior to the latest round.

Douyu is planning to list overseas but hasn't finalized preparations yet, Chief Operating Officer Cheng Chao said at an annual meeting in January. Sources familiar with the matter said the firm, which has over 200 million registered users, will list in Hong Kong this year with a valuation of more than CNY10 billion.

China has been itching to make its own stock markets more accessible to rising tech startups, but many don't anticipate being able to list on the mainland due to its stringent profitability requirements, even after the securities regulator announced it would ease restrictions. Companies must have made a profit for three straight fiscal years with earnings exceeding CNY30 million to list there, but most startups are too busy investing to focus on net income.

Tencent first invested in Douyu in March 2016, leading its B-round worth more than USD100 million. It led the CNY1.5-billion C-round in August the same year. The streaming platform raised funds from a unit under China Merchants Bank Co. in its D-round, but did not disclose the value of the series.

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Keywords:   Douyu,TENCENT,IPO,Live-Streaming