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CapCut leader Zhang Xiaoran departs as ByteDance doubles down on AI

Written by 36Kr English Published on   2 mins read

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ByteDance’s CapCut head exits as the company redefines its strategy, prioritizing AI-driven innovation like the Dreamina platform.

Zhang Xiaoran has left her position as head of ByteDance’s CapCut, according to multiple sources reported by 36Kr.

Public records trace Zhang Xiaoran’s academic journey to the Wuhan University of Science and Technology and the Chinese University of Hong Kong. Her professional path includes being an early team member of MYOTee, which later evolved into CapCut after ByteDance acquired the company. By late 2021, she was at the helm of products and operations for CapCut, Xingtu, and other associated apps, driving their growth from early development to a thriving presence in the market.

In early 2024, Kelly Zhang (also known as Zhang Nan), ByteDance’s former Douyin CEO, announced her transition to oversee CapCut and Dreamina, with Zhang Xiaoran directly reporting to her. ByteDance has not yet addressed inquiries regarding Zhang Xiaoran’s departure.

Launched in 2019 as ByteDance’s video editing app, CapCut was initially positioned as Douyin’s official editing tool. Over time, it has attracted a diverse user base that spans individual creators, professional content makers, and enterprises. By February 2021, the app expanded its reach with versions for iPad, Mac, and Windows, followed by an enterprise edition in 2022, solidifying its presence in both consumer and B2B markets.

Despite a low-profile start, CapCut has cemented itself as China’s leading video editing platform and a key growth driver for ByteDance. Within two years of its debut, the platform surpassed 100 million monthly active users (MAUs), a milestone that underlines its widespread appeal.

Globally, CapCut’s integration within the TikTok ecosystem has propelled its adoption. Sensor Tower data reveals it has become one of the most downloaded apps in the United States since its 2020 launch. As of 2024, CapCut serves over 300 million MAUs worldwide, capturing a commanding 81% share of the mobile video editing market.

In November 2024, 36Kr reported triple-digit revenue growth for CapCut and its international counterpart, nearing RMB 10 billion (USD 1.4 billion) in annual revenue. Combined, the platforms have attracted over 800 million MAUs globally.

CapCut has been instrumental in ByteDance’s development. Its accessibility significantly contributed to Douyin’s evolution into a content-driven community. Traditionally, video editing depended on advanced PC software, limiting its reach. CapCut lowered this barrier by enabling users to manage ideation, material sourcing, shooting, editing, and dubbing directly from mobile devices.

CapCut has been a forerunner in ByteDance’s adoption of generative AI. Since 2022, features like text-to-image conversion and music generation have enriched the user experience. Its current tools also include digital avatars and voiceover editing, among others.

Kelly Zhang’s involvement with CapCut brought greater operational focus. In May 2024, the platform introduced Dreamina, an AI-driven video creation platform equipped with tools for image generation, smart canvases, and storytelling. ByteDance has reallocated internal resources to prioritize Dreamina, which it envisions as the “TikTok of the AI era.”

Reports indicate that Dreamina’s development has been elevated in strategic importance, with future updates potentially incorporating applications in gaming, video production, and the metaverse.

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Yong Yi for 36Kr.

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