Kuaishou is a mobile video-sharing application on the rise. For good reason, this mobile application for creating video content is one of the most downloaded on Google Play and Apple App Store in eight countries outside its country of origin: China. Widely compared to TikTok, it represents a major rival for the latter.

Operating since 2010, the Chinese start-up is poised to become an international unicorn, thanks to its IPO in 2021 and the support of numerous investors. 

What is Kuaishou?

Kuaishou is a mobile application and online content-sharing website. The talk of the town, both in China and abroad, Kuaishou is the direct competitor to TikTokthe other major global video-sharing platform from the same country.

The mobile app was created by Su Hua and Cheng Yixiao and launched in 2010. Of the two members, we know that Su Hua was a software engineer for Google and Baidu before becoming the app's co-founder. As for Cheng Yixiao, he was a software engineer and developer at Hewlett-Packard. With over 100 million daily users, Kuaishou, now valued at 180 billion dollars (source: lesnumériques.com), has established itself as a serious rival to TikTok by rethinking its operations and service.

A Beijing mobile application  

Developed by Beijing Kuaishou Technology Co. Ltd, the Chinese start-up boasts an impressive user base - almost 1 billion monthly users. Still little known in Europehowever, the mobile app's fame quickly spread beyond China's borders. It has in eight countries such as Brazil, Pakistan, India and Indonesia, to name but a few.

Kuaishou also has other names around the world:

• Kwai on foreign markets 
• Snack Video in Pakistan, Indonesia and India

However, as with TikTok, it's primarily in China that the mobile video app is popular. As for its revenues, they come essentially from e-commerce and not from advertising: it is estimated that the app has a conversion rate 3 to 5 times higher than TikTok for e-commerce sales.

Mainly Asian users

According to data recorded by Kuaishou Technology, by 2021, the application was already registering over 400 million monthly active users and 300 million daily active users. A base mainly located in Asian countries (China, India, Pakistan, Indonesia...). Not surprising, given that Kuaishou has voluntarily withdrawn from the American market, one of the biggest consumers of online video-sharing applications.

An interesting fact about the profile of the app's users: a large proportion of them live in areas with "low" population density, and many are over 25 or even 30 years of age. Herein liesone of Kuaishou's strengths is to appeal to a different target than its great rival DouYin (the Chinese name for TikTok).

A video-sharing platform for e-commerce 

One of the reasons for Kuaishou's success is its ease of use and wide range of e-commerce services. With millions of daily users and impressive conversion rates, the app represents an advantageous resource for brands wishing to sell products through influencer marketing and social networks.

More than just an application for creating and sharing videos, Kuaishou has quickly become an essential e-commerce platform for its simple services and extensive functionality.

Today, the app is integrated into six platforms, including WeChat, Asia's equivalent of WhatsApp. And that's not all! The app has into the marketing of mobile games in 2018. Since then, users have had access to a full range of popular, entertaining and fun-to-play games, all available on Android and iOS.

Kuaishou: IPO, unicorn and fundraising

Founded in 2010, the platform has never stopped growing, to the point of becoming a unicorn in 2021 and experiencing largest tech IPO since Uber IPO since Uber in 2019.

From Gifs creation app to what it is today, Kuaishou has come a long way: thousands of employees, millions of users, virality on a global scale... More and more investors are looking to invest in the company, which has been listed on the stock market since 2021.

Kuaishou in 4 figures

After adopting a business model essentially centered on the purchase of virtual gifts, Kuaishou decided to open up more to advertising and e-commerce. These lucrative niches are ideal for ensuring the growth of the Chinese company.

In four figures, Kuaishou is :

• a 100-fold increase in the number of users since its creation in 2010
• 10 million videos uploaded daily
• marketing expenditure up 354.1 
• market capitalization of $180 billion
  

As proof of its success, Kuaishou has developed a partnership with JD.Com and many of China's e-commerce giants. This has enabled the application to achieve unprecedented popularity in its home country, increasing the interest of dubious shareholders.

Record-breaking fundraising

In January 2021, the Chinese video-sharing app announced its intention to go public in order to raise $6 billion in capital..

A thing said, a thing done. In early February 2021, Kuaishu announced its listing on the Hong Kong stock exchange, with 365 million shares at stake. The process paid off, as the company succeeded in raise $5.5 billiona little under 10% of its capital at the time.

Main investors : 

• Morningside Venture Capital
• Sequoia Capital 
• Baidu

A memorable IPO 

On Thursday February 4, 2021, Kuaishou is listed on the Hong Kong Stock Exchange. Its listing will then triple its initial price.. Valued at $60 billion, the company made a spectacular jump of 194% to $180 billion. Kuaishou shares rose from $14.8 to $43.8. The performance is historic, and the application is on its way to becoming an international unicorn. become an international unicorn and an integral part of Southeast Asia's best.

A promising future!

The Chinese company that owns Kuaishou (Kuaishou Technology) is planning to pull out all the stops for the future. In 2022, China's second-largest short video and live streaming platform continues to enjoy robust growth, with revenues increasing 10-fold between 2018 and 2022 (source: Seeking Alpha).

A different strategy from TikTok

To expand internationally, the app has not taken the same path as Douyin. While Kuaishou's competitor has expanded into the developed regions of the world (Europe and North America), the Chinese unicorn has chosen to focus on Brazil and Indonesia.to focus its development on Brazil and Indonesia regions with the world's highest DAU (Daily Active Users).

Regarding a forthcoming arrival in Europe and North America : no information has been shared to date.

Clear ambitions for 2022

Just look at the growth in revenues generated by Kuaishou between 2021 and 2022. China's content creation and sharing application is developing at full speed and intends to consolidate its position through :

• investments to improve its algorithms and the functionalities offered to its millions of users. 
• massive expansion in Brazil and Indonesia: two developing countries with the world's most active audiences!

Kuaishou: key information

By 2022, the company will have almost 22,000 employees.

The Chinese tech company generated sales of 81,081,513 euros in 2021.

On February 4, 2021, Kuaishou went public on the Hong Kong stock exchange with a direct listing at $14.8. Its capitalization was then estimated at $60 billion.

Kuaishou aims to establish itself in the global market. In the first quarter of this year (2022), the app arrived in Saudi Arabia thanks to a series of personalized campaigns during the month of Ramadan with the hashtag#RamadanRecipes.

However, a regulatory crackdown on China's technology sector has held back investment. Nevertheless, the promise shown on foreign markets is proving lucrative for the future.

Kuaishou's scalability: strong and promising! he application has seen an explosive increase in the number of users and videos since 2021. Kuaishou needed to introduce high-performance technologies in order to optimize its IT system architecture and continue its development... The application is one of the first start-ups to use Intel® Optane™ DC memory.

"Authentic, Diverse, Beautiful and Beneficial; these are the Core Values of the Chinese company.