INSUBCONTINENT EXCLUSIVE:
It is the first of its major competitors, Ximalaya and Dragonfly, to go public (though Ximalaya is expected to also list in the United
Lizhi is offering 4.1 million shares at an IPO price of $11 per share.Though Lizhi, Ximalaya and Dragonfly each host podcasts, audiobooks
and livestreams, Lizhi, whose investors include Xiaomi, TPG, Matrix Partners China, Morningside Venture Capital and Orchid Asia, has
iResearch, it has the largest community of user-generated audio content in China
The company said that in the third quarter of 2019, it had a base of 46.6 million average monthly active users on mobile and 5.7 million
average monthly active content creators
While podcasts in the United States typically use revenue models based on ads or subscriptions, creators on Lizhi and other Chinese
podcasting apps monetize through virtual gifts, similar to the ones given by viewers during video livestreams.In an interview with A
Technology News Room, Lizhi CEO Marco Lai said the company plans to use proceeds from the IPO to invest in product development and its AI
Lizhi uses AI tech to distribute podcasts, which it says results in a 31% click rate on content
AI is also used to monitor content, give creators instant user engagement data and provide features that allow them to fine-tune recordings,
reduce noise and create 3D audio.Despite its quick growth, Lai says online audio in China is still an emerging segment
About 45.5% of total mobile internet users in China listened to online audio content in 2018, but adoption is expected to increase as IoT
devices like smart speakers become more popular, especially in smaller cities
Lizhi has a partnership with Baidu for its Xiaodu smart speakers, and develop new ways of distributing content for IoT devices, says Lai.
