Beijing Kling Technology, the video-generation unit under Kuaishou, has signed an investment agreement bringing in two new shareholders. The China AI Industry Investment Fund subscribed for roughly 1.14% of the company for ¥1.4 billion, while Zhengda Robotics put in about ¥131 million for a 0.11% stake. Both investors' agreements include redemption rights. Kuaishou said the full subscription quota for this round has now been used up.
Working backward from each deal's amount and percentage separately gives two implied valuations for Kling — about ¥122.8 billion from one calculation and about ¥119.1 billion from the other (rough estimates), with the gap likely coming from pricing details across different subscription tranches. Splitting the difference puts the company at roughly ¥120 billion, or somewhere in the ballpark of $17 billion.
The Redemption Clause
A national-level industry fund taking a stake in a video-generation company is easy to read as an industrial endorsement. But the redemption clause written into the agreement means the money is still structured, on paper, as a financial investment — if the agreed IPO or other exit path doesn't materialize, the investors can require the company or its existing shareholders to buy the shares back. Clauses like this are common in yuan-denominated funds, and their presence here suggests the due-diligence and risk-control process for a state-backed fund followed the same playbook, without being relaxed for strategic considerations.
For Kling, the cost is a potential buyback obligation now sitting on its balance sheet; the benefit is the credibility that comes with state industrial capital, which should make things like procuring domestic compute or expanding into government and enterprise accounts somewhat easier to negotiate.
Kling's Own Numbers
On the financials, Kling's revenue topped ¥850 million in the second quarter of this year, up more than 200% year over year. Over the same period, Kuaishou's group-wide revenue came in around ¥35.5 billion, meaning Kling still accounts for only about 2.4% of the total — a small slice, but the steepest growth curve anywhere in the group.
User numbers are climbing too. As of June, Kling's global user base had passed 100 million, up about 67% from the end of 2025, spanning 224 countries and regions; enterprise customers were approaching 50,000, also up roughly 67%. The fact that both curves are growing at nearly the same rate suggests the growth is coming from broad-based penetration rather than any single customer segment pulling ahead on its own.
Simply annualizing the second-quarter revenue to around ¥3.4 billion (a rough estimate that ignores seasonality and any slowdown in growth going forward), the ¥120 billion valuation works out to roughly a 35x price-to-sales multiple. For the video-generation space, that's not cheap, but it's not outlandish either — plenty of peers carry higher multiples, and Kling at least has an actual revenue curve backing it up.
Compared With the Rumor From Four Months Ago
Back in May, reports circulated that Kuaishou was planning to spin off Kling and raise $2 billion at a $20 billion valuation. Converted to yuan at the time, that figure came out to nearly ¥140 billion. Four months later, the subscription that actually made it onto paper values the company at around ¥120 billion — lower than what the rumors had suggested.
The two figures were never measuring quite the same thing: one was a market-pricing expectation for a standalone spinoff financing, the other is an agreed price for bringing in strategic investors within the existing shareholder structure. In private markets, it's common knowledge that rumored valuations are just expectations — the actual deal price is a separate matter. What's more telling is the sequencing: this round came from an industrial fund, which looks more like groundwork for an eventual spinoff than a valuation being pushed to its ceiling in one shot.
The line about the subscription quota being fully used also hints that the allotment opened up for this round was limited — this wasn't a large-scale fundraising event.
Sources: Kuaishou disclosure filing, TechNode, CocoLoop, Sina Technology; investment amounts and equity percentages verified against the disclosed filing figures, overall valuation and price-to-sales multiple are rough estimates based on subscription amounts and percentages.