Lizhi, a China-based podcast app developer that counts smartphone maker Xiaomi and talent agency CAA-backed investment firm Evolution Media Partners as investors, filed for a $100m initial public offering yesterday.
The company plans to float on either the New York Stock Exchange or the Nasdaq Global Select Market. Credit Suisse Securities (USA) and Citigroup Global Markets have been appointed underwriters for the proposed offering.
Founded in 2013, Lizhi has built an audio platform where users can create, share and monetise podcasts. It uses artificial intelligence (AI) technology to analyse characteristics such as tone of voice and help listeners discover content they may enjoy.
The app has 46.6 million monthly active users and hosts 5.7 million creators. More than 160 million podcasts had been uploaded by the end of last month and the IPO proceeds will drive product development, AI technology development and international growth.
Lizhi disclosed in its filing that it raised $32m in an August 2017 series D round featuring Cyber Dreamer, a vehicle for private investor Lam Lai Ming, before adding $5m in series D1 financing the following month from Evolution Media Partners vehicle Evolution Media China.
The company raised $20m in series C funding from investors including Xiaomi, Morningside Ventures, Matrix Partners China and Shunwei Capital in 2015 according to reports at the time, but Lizhi’s filing indicates only $16.1m of it was equity financing.
Undisclosed investors supplied $4.2m in debt financing for the 2015 round that was converted into series C-plus shares in late 2017. Lizhi closed a $3.5m series B round that included Matrix Partners China and Morningside Ventures in 2014, after the former supplied $1m in series A funding in 2011.
Lizhi’s largest shareholder is Matrix Partners China, with a 21.9% stake, while Morningside Ventures owns 21.5% and Cyber Dreamer maintains a 13.3% shareholding.
