China's Tencent invests US$50 million to build Canadian start-up's Kik Messenger into 'WeChat of the West'

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Tencent already operates WeChat and QQ, two of the most popular mobile messaging tools on the Chinese mainland. Photo: Reuters

Published: 8:00pm, 19 Aug 2015Updated: 8:07pm, 19 Aug 2015

Apparently not satisfied with operating two of China’s biggest mobile messaging apps in the guise of WeChat and QQ, China's biggest internet company Tencent has invested US$50 million in Canadian start-up Kik Interactive, which runs the teen-friendly Kik Messenger app.

The injection of wealth from China’s biggest social network and online entertainment company brings the start-up’s valuation to US$1 billion, Kik said in a statement Monday.

It also gives the app more room to manoeuver vis-a-vis wealthy rivals like Facebook-owned WhatsApp and Snapchat. Kik was founded by a group of students at the University of Waterloo in Ontario, Canada.

Tencent has been fortifying its position in recent months by sinking its teeth into a variety of exposed areas.

It is preparing to launch an online stock trading platform, has vowed to invest more in its online-to-offline partnerships, and earlier this month proposed acquiring any remaining shares in mobile and online travel services provider eLong that it does not already own, in a bid to further tap China's tourism boom.

Kik Messenger looks like another sensible bet as the app has over 240 million registered users. It is especially popular among young teens in the US, with two in five now active users of the app, the company claims.