According to media outlet The Paper, ByteDance, the parent company of TikTok, has confirmed its plan of building out its real estate app Xingfuli, or Happy Lane. The tech giant has initiated the fundraising efforts for the new business and will introduce external investors into the process.
It is the first time that ByteDance has tried to spin off its business as property is not tightly related to ByteDance’s core businesses in social media sector.
The potential investors for Xingfuli include Sequoia Capital China, CICC, Vanke, and Country Garden. ByteDance will also possibly unbundle its information services related to vehicles and health in the near future.
In September, ByteDance deepened its foray into China’s real estate market after acquiring Beijing Fuwang Real Estate Agency Co. Ltd., a unit of China’s third-largest real-estate brokerage firm Beijing Maitian Real Estate Brokerage Co. Ltd.
In October, ByteDance laid off junior-level employees from Ohayoo, a gaming unit in 2018, to mitigate the uncertain effects of China's stricter scrutiny on gaming.
In an internal meeting held on November 18, the company disclosed that its domestic advertising revenue has ceased expanding in the past six months. It is the first time the company has stopped growing since it began commercialization in 2013.