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TikTok Parent Bytedance Looking At Whopping USD 6 Billion Loss After India's Ban On Apps
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India, 3 July 2020 3:27 AM GMT | Updated 3 July 2020 4:17 AM GMT
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A source close to ByteDance told the Chinese state media that in the past few years, the company had invested more than $1 billion in the Indian market, and the ban could virtually halt ByteDance's business there, causing a loss as high as USD 6 billion.
Chinese internet company, ByteDance Ltd., parent of TikTok, Helo, and Vigo Video said that India's decision on banning Chinese apps could potentially cost close to $6 billion (Rs 45,000 crore) loss to the organisation.
A source close to ByteDance told the Chinese state media, The Global Times, that in the past few years, the company had invested more than $1 billion in the Indian market, and the ban could virtually halt ByteDance's business there, causing a loss as high as USD 6 billion.
The media claimed that the figures could further increase for the mother company, if the potential loss incurred from other apps is combined.
According to data from Sensor Tower Inc., a mobile app analysis company, TikTok was downloaded 112 million times in May, almost 20% of the total in the Indian market, which is double of the US market, the media reported.
"Our managers say there is no need to panic and it's business as usual. But we all are concerned about losing jobs," one ByteDance content reviewer in Hyderabad spoke to Reuters.
TikTok and Helo are no longer available on Indian app stores, and already-downloaded TikTok apps don't display any content. Any of the 59 applications that are pre-installed, the telecom operators have been directed to disable them.
ByteDance has seen India as one of the world's most important markets and a major source of revenue for the company, following which the organisation had last year invested USD 1 billion and hired several senior executives for the same. In July the same year, the company also released plans to build a data center in India.
The Chinese multinational internet company was founded in 2012 and is reportedly worth over US$100 billion as of May 2020.
On Monday, India put an interim ban on 59 Chinese applications, including the hugely popular TikTok and UC Browser, after a violent face-off in Ladakh's Galwan valley between both the countries.
The government said that prohibition was needed as these apps engaged in 'activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order'.
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