Midu Reader

About Midu Reader

Midu Reader, a mobile literature application developer headquartered in Shanghai, China, has established a significant presence in the country's competitive online reading market. The company was founded in 2017 and officially launched its first app, Midu Novels, in May 2018 as a subsidiary of the mobile content platform Qutoutiao. This strategic initiative by Qutoutiao was designed to diversify its content ecosystem and tap into the growing demand for digital entertainment, particularly among users in China's lower-tier cities who have demonstrated a strong appetite for mobile entertainment.

The company operates within the digital publishing sector, targeting a vast audience of online readers. By the fourth quarter of 2020, the platform had amassed 200 million users and featured a library of nearly 200,000 e-books. Midu Reader's business model is primarily a freemium structure, offering users access to a wide range of novels at no cost, with revenue generated through in-app advertising. This approach pioneered the free, ad-supported online literature model in the market. For users preferring an uninterrupted experience, a subscription-based, ad-free option is also available. The platform's content spans various genres, including romance, fantasy, and action, catering to diverse reader preferences.

Midu Reader has successfully navigated the venture capital landscape to fuel its expansion. The company's financing history includes an $18 million Series A round in January 2019, followed by a substantial $100 million Series B in October 2019, led by CMC Capital Partners. Qutoutiao participated in the Series B round, maintaining its position as the controlling shareholder. A further $110 million was secured in a Series C round in March 2021, demonstrating continued investor confidence in its growth trajectory. These capital infusions have been directed towards enhancing its content library and creating more interactive and engaging reading experiences for its user base.