NASDAQ-listed Chinese online social entertainment firm YY Inc. has reportedly led a US$70 million series D round in Tantan, a Chinese social networking app seen as Tinder’s copycat in China, according to Chinese media reports citing insiders.
Founded in 2014, Tantan works the same way as the U.S. dating platform, which utilizes a location-based social search mobile app that facilitates communication between mutually interested users.
Tantan currently has over 13 million registered users and 2.5 million daily active users. Its target customers are young professionals living in smaller cities in China.
NASDAQ-listed YY Inc. has over 300 million users, and features a virtual currency that people can earn by posting online content such as karaoke singing or creating tutorial videos. The investment in Tantan may be part of a broader strategic partnership on product synergy, user referrals and monetization improvements.
Tantan earlier raised a US$5 million series A round from Bertelsmann Asia Investments and Vision Plus Capital in 2015, then completed a US$13 million series B round from DCM, KPCB, GX Capital and LB Investment that same year. DST Global, Vision Plus Capital and LB Investment led a US$32 million series C round in the app in May 2016.
Tantan is considering an IPO at the end of this year, according to the reports. DST Global previously invested US$11.5 million in Chinese location-based social networking mobile app Momo Inc., which was listed on the NASDAQ and raised US$216 million in 2014.