China's PE-backed Zhihu raises $434m Series F round
Zhihu, a Chinese question-and-answer platform, has raised a $434 million Series F round led by domestic search engine Baidu and short video site Beijing Kuaishou Technology.
Existing investors Capital Today China Group and Tencent Holdings, which both participated in the company’s $100 million Series D round in 2017 and its $270 million Series E round last year, also joined the new investment, according to a release. The Series F round reportedly values Zhihu at nearly $3.5 billion.
Zhihu was founded in 2010, shortly after its US counterpart Quora, with which it shares a number of features such as online voting, user-generated topics, and options to follow particular topics or users. The company claims to have 220 million registered users and more than 130 million questions and answers.
In addition to Q&A sessions, Zhihu also offers daily and weekly newsletters and hosts round table opportunities. It primarily generates revenue through advertising, in addition to online courses and publications. The company will use the new capital to accelerate development of its technology and product innovations.
“Zhihu is a leading Chinese internet company, recognized for its unique knowledge creation and sharing community that integrates quality content, loyal users and meaningful interactions,” said Lixing Wang, managing director and head of investment banking at China Renaissance, which advised on the transaction. “We believe that the cooperation between Zhihu, Kuaishou and Baidu will create huge synergies and lay the foundation for long-term development.”
Sinovation Ventures, previously known as Innovation Works, is a longstanding investor in Zhihu, having participated in several rounds starting with an angel investment in 2011. Qiming Capital Partners and SAIF Partners have also given the company significant support.
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