Qutoutiao garnered $84 million downsized initial public offering six months back.
Qutoutiao, the next emerging short video-sharing app has successfully bagged $171 million in a new round of funding. Alibaba, a Chinese multinational conglomerate fueled the investment round.
With this injection, the company’s 11.4 million shares will be converted to $15 per American depositary shares, which roughly represents 4 percent of Qutoutiao.
Interestingly, the funding by Alibaba has hit Qutoutiao right after six months of a downsized initial public offering of $84 million by Nasdaq.
The fresh investment by Alibaba has propelled Qutoutiao app to take on Bytedance, a Chinese Internet technology company that is spreading its feet in the video-sharing platform.
Also, Qutoutiao remains one of the few companies that is backed by Alibaba and Tencent, world-renowned tech giants and arch-foes. Other than that, Didi Chuxing, a car-hailing service, and Bilibili, a youth-focused media company, is backed by Alibaba and Tencent.
A few days back, the Tencent-backed news app Qutoutiao secured $242 million in funding from various investors. The funds were directed to construct strategies regarding user acquisition and retention.
The last funding was crucial, as Qutoutiao app is pitching itself against TikTok and trying hard to carve its name in the short video-sharing platforms.
In the last quarter, the sales and marketing expenses of Qutoutiao jumped to $200 million, which is a jump of over 450 percent. But at the same time, the company also witnessed a substantial loss of $283 million, which was $14.3 million a year ago.
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