China-based video streaming platform iQiyi has raised $1.53bn from investors including internet group Baidu and IDG Capital, the local venture capital affiliate of media company International Data Group, Reuters reported yesterday.
Baidu contributed $300m to the round, which also featured venture capital firm Sequoia Capital, hedge fund manager Hillhouse Capital and, according to the South China Morning Post, the Everbright-IDG Industrial Fund joint venture, Boyu Capital and Run Liang Tai Fund.
Launched as Qiyi in 2010, iQiyi operates an online video platform that offers both a free and a premium subscription-based streaming service. It had about 480 million monthly active users as of the end of 2016.
The financing, which was provided in the form of convertible debt, is expected to support the strengthening of iQiyi’s original output as it looks to secure more customers for its paid service. It doubled the number of paid subscribers to 20 million from December 2015 to June 2016.
The company received funding from Baidu and private equity firm Providence Equity Partners in 2010, and rebranded to iQiyi the following year, before Baidu bought shares from Providence in 2012 to take a majority stake.
Smartphone producer Xiaomi and VC fund Shunwei Capital subsequently provided $300m of funding for iQiyi in 2014 at a reported valuation of between $2bn and $3bn. Baidu invested $100m at the same time to maintain an 80% stake, according to Bloomberg.
Robin Li, chief executive of Baidu, said in a statement yesterday: “iQiyi has been a great asset and an important part of the Baidu ecosystem.”