Chinese live-streaming platform Inke has acquired Beijing-based social networking app Jimu for $85 million.
Jimu operates primarily in mainland China and is popular among young people; approximately 80 per cent of its userbase is under 25, according to Inke. The
Inke also stated that Jimu is among the top 10 social networking apps in the country, but did not disclose how many active users it has currently. In 2018, it cited around 25.5 monthly active users, a 12.3 per cent increase on the year prior.
Despite growth in user numbers, Jimu saw a net loss of RMB 17.7 million (approx. $2.57 million). Inke stated that it expects to see that loss subside as a result of the acquisition. Jimu offers transactions such as membership fees, virtual currency and ad fees.
Other live streaming competitors in the Chinese market include Tencent-backed DouYu, which filed for a $500 million IPO in the US earlier this year. Competing platform Huya also raised $180m from its own offering last year. Huya also counts Tencent among its serious investors.