How Kuaishou Turned a GIF App into a $1.3T Hong Kong IPO

Kuaishou successfully listed on the Hong Kong Stock Exchange on February 5, 2022 under the ticker 01024‑HK, achieving a market capitalization of over HK$1.3 trillion. The stock code 1024 reflects the founders' affection for the 1 KB byte, symbolizing their ambition to change the world through code and technology.

The IPO ceremony featured popular influencers as bell‑ringers, while CEO Su Hua imagined staying at his desk to write code on the listing day, emphasizing the company's focus on people, labor, and creation.

Kuaishou is now the world’s largest live‑streaming platform, the second‑largest live‑e‑commerce platform, and the second‑largest short‑video platform in China, ranking among the top five internet‑listed companies in the country.

Early financing involved 11 rounds of funding, with notable investors such as Tencent, Wuyuan Capital, DCM, DST, Baidu, Sequoia China, and Temasek. A pivotal early investment came from Wuyuan Capital, which invested RMB 2 million for a 20 % stake, later yielding a ten‑thousand‑fold return.

Founders Cheng Yixiao (iOS), Yang Yuanxi (Android), and Yin Xin (servers) launched the original Gif Kuaishou in 2011, initially mimicking Meitu to enable users to share animated images. The team grew to four members before expanding, and by 2014, leveraging 4G networks, Kuaishou shifted to a video‑social platform, targeting lower‑tier cities and achieving rapid user growth.

Competition intensified when Douyin entered the market in 2016, eventually surpassing Kuaishou’s daily active users (DAU) by 2018. Kuaishou responded with the “K3 campaign,” aiming for 300 million DAU by early 2020, investing heavily in marketing, including a partnership with the 2020 CCTV Spring Festival Gala and a RMB 1 billion cash‑red‑packet promotion.

Commercialization accelerated from 2017 to 2019, with live‑streaming revenue rising from RMB 79 billion to RMB 314 billion, online marketing services growing from RMB 3.9 billion to RMB 74 billion, and e‑commerce transaction volume soaring from RMB 0.97 billion in 2018 to RMB 596 billion in 2019.

By early 2020, Kuaishou’s main app and its “Kuaishou Lite” version together reached a peak DAU of 2.9 billion, meeting the campaign target and narrowing the gap with Douyin.

The story underscores how recognizing growth challenges, adjusting strategy, and reinforcing product and organizational capabilities can transform a startup into a trillion‑dollar enterprise.