Jinri Toutiao rival Qutoutiao files for US IPO

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Tencent-backed Qutoutiao files for US IPO– Reuters

What happened: Tencent-backed Chinese content aggregator Qutoutiao filed for an initial public offering of up to $300 million with the US Securities and Exchange Commission on 17th August. The proceeds will be used in a variety of areas, including expanding and enhancing content offerings, according to the company.

Why it’s important: Qutoutiao is the closest rival to Jinri Toutiao, the country’s top new aggregator app. In its latest financing deal finalized in March, Qutoutiao raised to the status of a unicorn with a more than $1.6 billion valuation. As a major investor, Tencent sees Qutoutiao as a strategic portfolio firm for the Chinese tech giant to fend off competition from ByteDance, parent of Jinri Toutiao and short video platform Douyin. ByteDance is reportedly considering an IPO next year.