Sina Tech, 8/14/17
Hangzhou-based Ergeng Network Technology, operator of online and mobile short video platform Ergeng Video, announced today the completion of RMB 100 mln in Series B+ funding led by Yunfeng Capital, the private equity company co-founded by Alibaba Group (NYSE: BABA) chairman Jack Ma, and with participation from Source Code Capital.
Ergeng Video distributes original short video content through its website and via official accounts on Tencent's (0700.HK) WeChat mobile messaging app and microblogging platform Weibo (Nasdaq: WB).
Ergeng's revenues are driven mainly from the production of promotional videos for business customers, including museums, food and drink brands, and shared bicycle businesses, among others. Ergeng founder Ding Feng said that the company is already profitable, with H1 2017 order value in the RMB 9-digit range, up 800% YoY.
Currently, 70-80% of the short video content on Ergeng is general, self-produced content, with the remaining content being commissioned by businesses and organizations. Content covers lifestyle, fashion, and music, and Ergeng plans to add finance and sports content.
Ding said that the company will focus on:
1. Working with cities to produce videos that promote cities' unique features.
2. Creating an "Ergeng School" to train and develop film and video production talent, in partnership with local governments and universities.
3. Continuing its development of a national content marketing system to serve foreign and domestic brand owners.
4. Building an online video content production platform with a high definition video content library.
Ergeng in H1 2017 added promotional content covering 19 cities, including Suzhou, Xi'an, Changsha, and Xiamen, building on the previously available cities of Beijing, Shanghai, Chengdu, and Hangzhou. Ergeng also has videos for Japan and Australia, and will soon launch a North American channel.
Ergeng has shot more than 2,800 videos, which have accumulated a total of 20 bln views. The user base is close to 50 mln, and the site has more than 50 mln daily video views.
Editor's Note: For more information on this topic, please see "Online and Mobile Short Video Platform Ergeng Lands RMB 150 Mln Series B," MD 1/19/17 issue.