China-based news aggregation app provider Qutoutiao has contributed to a $100m series B round closed yesterday by Midu, its online literature platform subsidiary.
The round was led by CMC Capital, the venture capital and private equity firm formerly known as China Media Capital. It came in the wake of a $14m series A round closed in August this year that was funded by undisclosed investors.
Midu incorporates Midu Novels and Midu Novels Lite, online platforms where readers can access stories they can read for free. The former had 40 million monthly active users and 5 million daily active users (DAUs) as of late 2018, according to a financial report cited by Yicai Global.
However, Midu Novels was one of several online literature platforms ordered by Chinese regulators in July this year to remove supposedly salacious content.
Qutoutiao chairman and CEO Eric Siliang Tan said: “We are happy to see the completion of the transaction and we are confident in Midu’s long-term growth potential. Midu continues to play a crucial part in Qutoutiao’s overall content platform strategy.
“We have a clear roadmap ahead for Midu, and our objectives of reaching more than 10 million DAUs by the end of the year and becoming the largest online literature platform in China by 2020 remain unchanged.”
