INSUBCONTINENT EXCLUSIVE:
The growth of China Bytedance, an ambitious $30 billion tech firm, and its highly addictive Toutiao news aggregator app has set off a
search for services with similar growth potential across the world.
India, second in population only to China with rapidly growing internet
access, is an obvious place to look, and would-be pretender to the Toutiao crown has been found in the shape of NewsDog, a Chinese company
that stumbled on success in India
Today, NewsDog announced a $50 million Series C round led by Chinese internet giant Tencent.
Toutiao is a phenomenon in China
The app has around 200 million daily users, and it is one of the few new tech products to emerge in a China where Tencent and Alibaba
dominate the consumer app landscape
Point in case, it is so mainstream now that it has even run into issues with China internet censors.Toutiao is essentially a news
aggregation service that lets consumers catch their daily reads and discover stories with an experience tailored to their habits and
likes.
That very much the style of NewsDog, which claims over 50 million users
The service has branched out to cover 10 of Indians many languages, while it recently established a platform — ‘WeMedia& — that
augments its content aggregation by allowing users to submit stories, too.
This round is a major milestone for the company
In a competitive environment, it is the largest fundraising round from a news app company in India while it more obviously brings Tencent,
the $500 billion tech giant, on board with its experience and support
Other investors include Chinese VCs Danhua Capital (DHVC) and Legend Capital as well as Chinese mobile app firmDotC United.
NewsDog
competition includes Dailyhunt— which is backed by Toutiao-owner Bytedance — Inshorts, which counts Tiger Global among its investors,
and NewsPoint, which is owned by media firm Times Internet.
One other competition is UC News, a service from Alibaba-owned UC Web, which,
like NewsDog, is Chinese.
NewsDog was launched in 2016 by CEO Forrest Chen Yukun,a computer science graduate from Tsinghua University
graduate, and Yi Ma, who holds a PhD from Princeton University and previously worked at Baidu and Goldman Sachs .
Data from App Annie shows
that NewsDog is the top news app in the Google Play Store in India — Android is the country dominant operating system — ahead of
Dailyhunt andNewsPoint in second and third, respectively
According to Sensor Tower, another app download analytics service, the app has 43 million installs and its downloads grew 76 percent
year-on-year in the first quarter of the year.
NewsDog plans to use this new funding to pull further ahead of the competition by focusing on
adding more languages and deepening its content library.
The company said it is already using machine learning to help produce an experience
that is customized to users — the experience that Toutiao pioneered in China — and it plans to double down on that.
&Poly culture and
multiplelanguages make content matching an incredibly hard problem,& Chen said in a statement
&So far, we have made goodinitial progress but content business is like an endless journey
There is no finish line,you have to just keep running.&
NewsDog is aiming to reach 100 million users as its next milestone as India internet
The country is tipped to reach 500 million internet users by June 2018, according toa report from the Internet and Mobile Association of
India (IAMAI) and Kantar IMRB
That up from 481 million six months prior, but internet penetration in rural areas is at just 20 percent compared with 65 percent in urban
India which indicates even more growth potential.
For Tencent, meanwhile, this investment is another upping of its pace in
India.
Initially, the company was slow to put money to work in India, where Alibaba entered early to buy stakes in the likes of Paytm, but
gradually Tencent has got its checkbook out
Its most notable India-based deals include WhatsApp challenger Hike, healthcare platform Practo, andmusic service Gaana
This year, it is reportedly focusing on finding promising early-stage startups where it can invest $5-15 million.
In NewsDog, Tencent will
hope to jump on the news aggregator train that it missed in China, giving Bytedance an opportunity to become a major Chinese consumer
