VC-backed YY spin-out Huya files for US IPO
Huya, a Chinese game broadcasting business that spun out from social networking platform YY and raised capital from Tencent Holdings and several VC investors, has filed for an IPO in the US.
The size and pricing of the offering have yet to be decided. The prospectus identifies YY as the controlling shareholder with a 48.3% stake and over half the voting power, while Tencent has 34.6%. The internet giant provided $461.6 million in Series B funding for Huya in March, which included an option to take a majority voting interest in the company.
Last year, the company received a $75 million Series A round led by China Ping An Insurance, which contributed $22.5 million. Banyan Capital, Engage Capital, and Morningside Ventures also took part, investing $5 million, $8 million, and $4.5 million, respectively.
YY, which claims to be China's leading live streaming social media player, began branding its gaming services as Huya in 2014. Huya now claims to be the largest and most active game live streaming community in China, based on average monthly active users (MAUs) – it had 38.8 million in the fourth quarter of 2017 – and time spent on the app. It covered 2,600 different games as of December 2017, working with game developers and e-sport event organizers.
The platform allows real-time interaction between viewers and broadcasters, resulting in viewer-generated content that is intended to add to the entertainment experience. Huya monetizes its user base through advertising and the sale of virtual gifts.
China is the largest global market for online gaming and live streaming services. It had 646 million gamers in 2017, including 229 million e-sports participants. These numbers will reach 917 million and 537 million, respectively, by 2022, according to Frost & Sullivan. In addition, MAUs of live streaming services are expected to rise from 279 million to 518 million.
Game live streaming revenue stood at just $121 million in 2015. It reached $1.2 billion last year and is set to hit $4.9 billion by 2022. Over the same period, the number of game live streaming MAUs is projected to rise from 180 million to 349 million.
Huya posted revenue of RMB2.18 billion ($335.8 million) in 2017, up from RMB796.9 million the previous year. Meanwhile, the company’s net loss narrowed from RMB625.6 million to RMB81 million.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.