IQiyi Sports, a sports-focused spinout of China-based video streaming platform, iQiyi, has raised RMB850m ($124m) in a series A round at a $490m post-money valuation, China Money Network reported today.
The round included $43.9m from China Sports Capital, the specialist fund formed by venture capital firm Sequoia China and investment firm China Media Capital, and $7.3m from private equity firm Yao Capital, according to a company announcement.
Venture capital group IDG Capital paid approximately $58.5m for a 13.3% stake in the company last month, at the same time as private equity firm Huiying Borun invested $14.6m, the South China Morning Post reported.
IQiyi formed iQiyi Sports in partnership with sport marketing and communications service provider Super Sports Media, which provided its existing app as the basis for the platform, last month. Subscribers to both companies’ services had their memberships carried over.
The platform, owned by holding company Beijing Xinai Sports Media Technology, holds Chinese broadcasting rights for events including the English Premier League and UEFA Nations League football competitions and the Australian Open, ATP Tour and WTA Tour tennis tournaments.
The series A funding will support iQiyi Sports’ expansion in China’s sports streaming market as well as the growth of its football, tennis and golf coverage. News of the funding coincided with a $100m series B round announced by Baidu Video, a spinoff from internet group Baidu.