TikTok’s Parent Could Face $6 Bn Loss Due To Ban in India: Report
ByteDance is the parent company of TikTok which also has Vigo Video under its banner.
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It has been estimated that video chat app TikTok could lose $6 billion in revenue as an effect of the app’s ban in India.
As per a TOI report, a source close to the company said that ByteDance has invested more than $1 billion in the India market and the ban virtually halts its business in the country. This would translate to a loss of approximately $6 billion for the company.
The report also mentions that the figure estimated would exceed the predicted numbers if all the other banned apps are combined.
ByteDance operates other applications in the country apart from TikTok. Helo is a social media platform that also operated in India while Vigo Video is another short video-making app that has a substantial user base in the country.
As per data from a mobile analysis company Sensor Twoer, TikTok was downloaded more than 112 million times in the month of May and 20 percent of that was in India. There were twice as many people downloading the app in the US.
It is one of the most downloaded applications on the Google PlayStore with over 2 billion downloads.
IT Minister RS Prasad has said that these apps have been banned to protect the country’s sovereignty and integrity.
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