New York-based investment firm Tiger Global Management has built a stake in the TikTok owner ByteDance, through a 21-month share purchase activity at a low multiple of future free cash flow, in tow with SoftBank and Sequoia Capital to back and monetize the rapidly growing startup, the Financial Times reported on Monday, citing sources.
According to the report, ByteDance’s shares recently have been transacted on secondary markets with a company valuation of between USD 90 billion and USD 100 billion, up at least 20% from two years ago when SoftBank led a USD 3 billion funding round of the Beijing-based company.
Tiger Global, also an investor in e-cigarette startup Juul and Chinese ride-hailing giant Didi Chuxing, did not disclose the volume of the investment. It projects ByteDance will account for a 19% market share of China’s online advertising industry. The company appointed new China operation heads, while its founder Zhang Yiming will put his focus on global expansion.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.