China-based news aggregation app developer Qu Toutiao has secured more than $100m in a funding round led by internet group Tencent, 36kr reported today.
Founded in 2016, Qu Toutiao has created a news aggregation app that sources stories from a large range of news partners and personalises a user’s news feed to cater to their individual interests.
The company’s largest rival is the similarly named Toutiao, which was valued at $11bn as of April 2017, though sources have told Bloomberg its value rose as high as $20bn before the year ended.
Qu Toutiao frames itself as a more fun, light-hearted option than Toutiao. It also focuses on third and fourth tier Chinese cities with populations below 3 million, and offers rewards to regular users in the shape of digital currency.
The round valued Qu Toutiao at $1.3bn to $1.5bn, according to local news reports cited by 36kr, but people with knowledge of the matter told Bloomberg yesterday it is seeking to float in the US at a valuation of up to $3bn as early as this year.
Tencent had previously invested an undisclosed sum in the company in 2017 according to local media reports. Its other existing backers include Redpoint China Ventures, Chengwei Capital and China Media Capital, China Money Network stated.