Kuaishou, a popular photo and video sharing app maker in China valued at around $3 billion, is planning an IPO in the US later this year, TechCrunch said.
The app is estimated to have more than 40 million daily active users (DAU) and 100 million monthly active ones, and is mostly popular in rural areas and small cities.
According to China Money Network, the app was the fourth largest in China in terms of traffic in 2016 and became famous “as users uploaded bizarre and sometimes gruesome videos, including one where an elderly woman ate a light bulb and pieces of broken glass.”
The app is similar to Instagram and although its available in the US under the name Kwai, it is not especially popular there.
One reason for its success in China is thought to be the fact that social media platforms like Instagram and Snapchat are blocked in the country.
Some video up-loaders can make hundreds or thousands of Chinese yuan by sending out ads on the app, which also has in-app purchase options.
In comparison, Snapchat, which has 150 million DAUs, is expected to go public at a valuation of more than $20 billion, TechCrunch said, adding that though its revenue growth is impressive, its costs are very high, “and a mediocre reception may temper expectations for services like Kuaishou”.
At the end of last year, Chinese selfie app maker Meitu went public on the Hong Kong exchange, where it raised $629 million, valuing the company at $4.6 billion, lower than the $5 billion it had targeted.