Tencent Holdings recently unveiled its massive $50 million investment in real-time communications software developer, Zego, to venture into the growing industry of video conferencing in this time of the COVID-19 pandemic. Online video conferencing grew in fame and reliability during the lockdown for business, education, and gaming industries.
BEIJING, CHINA - APRIL 28: (CHINA OUT) (L-R) Hou Xiaonan, general manager of Tencent Open Platform, Lu Wei, general Secretary of Internet Society of China, Ren Yuxin, chief operating officer of Tencent, and Lin Songtao, vice president of Tencent Mobile Business Group, attend the 2015 Tencent Open Strategy Annual Conference at National Convention Center on April 28, 2015 in Beijing, China. The 2015 Tencent Open Startegy Annual Conference got held at National Convention Center and COO of Tencent delivered a speech that Tencent would start new integration of resources to created more innovative and entrepreneurial platform for society. General Secretary of Internet Society of China Lu Wei, COO of Tencent Ren Yuxin, vice president of Tencent Mobile Business Group Lin Songtao and general manager of Tencent Open Platform Hou Xiaonan attended the conference.
The Chinese multinational conglomerate company, Tencent, is known for its global Internet-related service products, including gaming, entertainment, artificial intelligence, technology, and more. The investment with Zego shows the company's interest and venture in the growing industry of real-time communications.
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Tencent Holding's Investment: $50 million for Zego's Communication Platform
According to South China Morning Post (SCMP), Tencent Holdings, Ltd., forefronted a massive $50 million investment in real-time communications software developer, Zego, particularly with its enormous video service conferencing. Zego holds one of the world's most extensive services for online education and video conferencing that would soon transcend in the post-pandemic period.
Qiming Venture Partners and IDG Capital joins Tencent in the recent venture and backs the company up with the investment with Zego. The software communications developer is now part of Tencent's growing investment portfolio in different technology companies, ensuring massive stakes in the world's market.
Zego did not disclose the company's latest valuation after the Tencent investment. However, the real-time communications company already posted a $350 million US listing last June 2020. This amount of value is massive for a startup company like China's Zego in a US listing, further confirming its growth and Tencent's interest in the startup.
Videoconferencing technology will grow from $3 billion last 2018 to an estimated $17 billion in three years. According to the Institutional Deposits Corporation's (IDC) estimates, the five-year growth on the Worldwide Videoconferencing and Telepresence beginning in 2018 would see a massive boost and expansion estimate.
Videoconferencing in the Post-COVID-19 Pandemic Era
LONDON, ENGLAND - OCTOBER 21: Camilla, Duchess of Cornwall wearing a face mask participates in a zoom call with members of the Pepper Pot Centre, a charity set up to support African and Caribbean older people in west London on October 21, 2020 in London, England.
Tencent's investment purely foresees the future of videoconferencing, even after lockdowns are lifted and community quarantine protocols ease down. The "new normal" would adopt the pandemic's technological advancement of migrating mostly to work-from-home set-ups and mainly relying on online teleconferencing.
One of the world's most famous video conferencing tools is San Jose-based startup, Zoom Video Communications, founded in 2011. Zoom's videoconferencing services revolutionized enterprises, education, and even the gaming industry by connecting people virtually.
Zoom faces multiple competitors in the industry, and China's Zego is one of the rising stars that will provide the world's videoconferencing needs shortly. According to experts' predictions, despite an eased lockdown, enterprises, education, and the gaming industry will still resort to online video chatting.
Who is Zego?
Zego is a Chinese startup real-time communications software developer that is one of the top players in the videoconferencing industry. Despite the many companies that offer the same services, Zego still gathers massive enterprises to use the platform, mainly in China, but would soon transition to international markets.
The startup company was established in 2015 by a former Tencent executive, Zego's CEO, Lin Youyao. The new CEO is the former QQ head, a subsidiary messaging application by Tencent. According to SCMP, Youyao's Zego revenue is expected to double this year and has an excellent track record since 2016.
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Written by Isaiah Alonzo
