iQiyi Sports, the sports platform of Chinese online video firm iQiyi, has raised a RMB500 million (US$73 million) strategic investment led by IDG Capital.
Chinese local private equity Huiying Borun Fund also participated in the deal.
Just the day before, iQiyi and Super Sports Media Inc. announced the establishment of a joint venture company, Beijing Xinai Sports Media Technology Co., Ltd., to operate the iQiyi sports platform. The original Super Sports App was renamed as iQiyi Sports.
IDG Capital subscribed to 13.33% of the shares of Xinai Sports for RMB400 million (US$58.6 million), and Huiying Borun subscribed 3.33% for RMB 100 million (US$14.6 million), according to an announcement.
This is the first financing that Xinai Sports has obtained since its establishment, valuing the new start company at about RMB3 billion (US$439 million).
After the completion of this financing, in addition to IDG Capital and Huiying Borun, Super Sports Media holds a 35.42% stake in Xinai Sports, iQiyi holds a 31.88% stake, and Super Sports President Yu Lingyi holds a 3.54% stake.
“The financing is only the beginning, there are still many investment institutions interested in iQiyi Sports,” said Yu Lingwei, Super Sports President and CEO of Xinai Sports.
“IDG Capital is one of the earliest investment institutions in the sports industry in China… We believe that iQiyi Sports will have a bright future under the help of Super Sports’ rich operational experience and iQiyi’s visitor volume and advertising marketing," said IDG Capital Partner Li Jianguang.
Chinese Culture Group is reportedly to invest RMB300 million (US$44 million) to become the A round shareholder of iQiyi Sports, but the company declined to comment on this.