ByteDance, the startup that owns the social network TikTok, has skyrocketed its revenue to $ 5.6 billion (about € 5 billion) in the first quarter of 2020, as reported by Reuters.
The information has been revealed by two close contacts to the company, but the company has declined to comment on the company’s financial situation.
The figure represents a growth of 130% compared to the same period of the previous year and ByteDance aims to enter 28.2 billion dollars (about 25.1 billion euros) in 2020.
Although TikTok’s success is undoubted — it accumulates more than 2 billion downloads, surpassing WhatsApp and Instagram as the most popular application — the social network is not the main revenue generator for ByteDance.
The bulk of the company’s revenue comes mainly from advertising on its applications in China., including its news aggregator Jinri Toutiao and Douyin, the Chinese version of TikTok.
Sources consulted by Reuters They assure that the current valuation of the company is between 95,000 and 140,000 million dollars (between about 85,500 and 124,500 million euros) with a view to a possible IPO, which places it as the most valuable startup on the market.
Founded in 2012 by Chinese businessman Zhang Yiming, Bytedance has conquered the Chinese market in a few years and is now backed by several of the most powerful investors on the market such as SoftBank, Sequoia Capital and General Atlantic.
This article was published in Business Insider Spain by Ana Zarzalejos.