TIK TOK the countdown to IPO
Tik Tok is social media platform where users can share short videos. It was the fastest platform to reach 1 billion users. According to app analytics site Sensor Tower, Tik Tok has been downloaded 1.5 billion times worldwide, outpacing Facebook and Instagram. Further, it has continued to grow, as download volume is up 6% from a year prior. Excluding gaming apps, it is the 3rd most downloaded app, trailing only WhatsApp and Messenger. Geographically, India is leading the recent surge in growth. They have accounted for approximately 31% of the app’s 614 million download sin 2019. China and the US have accounted for 11.5% and 8.2%, respectively.
Recently, Tik Tok has come under scrutiny by United States regulators, as its parent company, ByteDance, is Chinese. Security officials are concerned with US citizens data and use with Tik Tok. The company has discussed efforts to ditch its Chinese roots, as reported by the Wall Street Journal. Many close to the company’s leadership have acknowledged that its Chinese ownership is a liability. If the company intends to IPO, as it has stated interest, continuing to grow in the US is crucial. ByteDance is one of the most valuable startups in the world, as it was recently valued at approximately $75 billion.
Tik Tok has reported further integration into its app such as eCommerce and music streaming. It will be interesting to follow along in the next twelve months as ByteDance gears up for an initial public offering, and where it that will bring Tik Tok.