Executive Summary
– Milian Technology’s Yi Dui app achieved over 1.9 billion yuan in revenue and 262 million yuan in net profit in the first half of the year, positioning it as China’s most profitable dating app.– The app’s success stems from innovative features like video real-time interaction and host-guided three-party matchmaking, differentiating it from text-based competitors.– Despite high profitability, Yi Dui faces user complaints over induced spending and regulatory scrutiny, highlighting risks alongside its IPO ambitions.– The company has secured funding from prominent investors, including Xiaomi and Sequoia Capital China, and is now targeting a Hong Kong listing.– Investors should monitor regulatory developments and user retention metrics as key factors influencing the app’s long-term viability.
Beyond Swipe Culture: The Unseen Profit Power of China’s Dating Market
While global audiences might associate dating apps with casual swipes and fleeting connections, China’s digital romance landscape is undergoing a seismic shift. At the forefront is Yi Dui, a video-based matchmaking platform that has quietly become China’s most profitable dating app, reporting a staggering 1.9 billion yuan in revenue over just six months. Operated by Beijing Milian Technology, this app has revolutionized online dating through immersive, host-facilitated interactions, capturing a loyal user base and outpacing established players. As Milian Technology prepares for a potential Hong Kong IPO, its financial metrics—including a net profit of 262 million yuan in the same period—demand attention from institutional investors seeking exposure to China’s booming social entertainment sector. This deep dive explores how Yi Dui’s unique model drives its profitability, the challenges it faces, and what its IPO could mean for global markets. Understanding China’s most profitable dating app is crucial for anyone tracking high-growth tech investments in Asia.
The Genesis of Milian Technology
Founders’ Vision and Professional Backgrounds
Milian Technology’s origins trace back to its co-founders, Chairman Ren Zhe (任喆) and COO Zhu Xiaopu (朱晓朴), who leveraged their corporate expertise to disrupt the social app space. Ren Zhe previously held roles at IBM, Deloitte Consulting, and Oracle China, while Zhu Xiaopu gained experience at Motorola. Their combined backgrounds in technology and consulting provided a solid foundation for navigating China’s competitive digital landscape. The duo initially ventured into social travel products in 2011 but pivoted in 2015 to focus on emotional social platforms, leading to the launch of Yi Dui and Tie Tie. This strategic shift capitalized on rising demand for genuine connections in China’s fast-paced urban centers, where traditional matchmaking services were becoming digitized.
From Niche Startup to Market Leader
Beijing Milian’s establishment in 2015 marked a turning point, as the company quickly scaled its flagship app, Yi Dui. By integrating video features early on, Milian differentiated itself from text-heavy rivals like Momo and Tantan. According to CIC Consulting data cited in the company’s filings, Yi Dui now ranks fourth in China’s online emotional social industry by monthly active users but leads in revenue generation. The app’s rapid growth—achieving 15 billion yuan in half-year revenue—underscores its appeal to users seeking more engaging, interactive dating experiences. Milian’s expansion includes overseas apps like HiFami and Chatta, though Yi Dui remains the core revenue driver, solidifying its status as China’s most profitable dating app.
Yi Dui’s Disruptive Business Model
Video Real-Time Interaction: A Game-Changer
Yi Dui’s primary innovation lies in its emphasis on video-based interactions, a departure from the text and photo-centric models of earlier apps. This approach allows users to engage in live video chats, reducing the anonymity that often plagues online dating and fostering more authentic connections. The platform’s design mimics real-world dating scenarios, where users can see and hear potential matches in real-time, enhancing trust and engagement. This feature has proven particularly popular in China, where video content consumption is soaring, and users value visual verification in social interactions. By prioritizing video, Yi Dui has tapped into a broader trend of digital intimacy, making it China’s most profitable dating app through higher user retention and spending.
Host-Guided Three-Party Interaction System
Another key differentiator is Yi Dui’s host-guided three-party interaction model, which blends elements of live streaming and traditional matchmaking. In this setup, a host—often acting as a virtual matchmaker—facilitates conversations between users, encouraging participation and gift-giving to break the ice. This system creates a structured, entertaining environment that reduces awkwardness and keeps users engaged longer. For example, hosts might prompt male users to send virtual gifts to female participants, with the platform taking a cut of the revenue. This model not only drives monetization but also builds a community feel, contributing to Yi Dui’s reputation as China’s most profitable dating app. The company’s prospectus highlights that this approach “achieves efficient ice-breaking and is widely popular,” though it has also sparked criticism over commercialized interactions.
Revenue Streams and Profitability Drivers
Membership Fees and Subscription Tiers
Yi Dui employs a multi-tiered monetization strategy, starting with affordable membership plans. Users can opt for a monthly subscription at 30 yuan, a quarterly plan at 50 yuan, or an annual membership for 100 yuan. These fees grant access to premium features like advanced search filters and ad-free browsing, but they represent a smaller portion of overall revenue. The low entry cost helps attract a broad user base, which then engages with higher-margin services. While membership fees contribute to steady income, they are overshadowed by gift-based revenue, underscoring why Yi Dui is China’s most profitable dating app through its diversified earnings model.
Gift-Based Revenue Sharing and Virtual Economy
The core of Yi Dui’s profitability stems from its gift economy, where users purchase virtual gifts to send during interactions. For instance, adding a friend or initiating a video chat often requires gifting, with Milian taking a significant share of these transactions. This system mirrors live-streaming platforms, where emotional engagement translates directly into spending. Data from user complaints reveals instances of individuals spending tens of thousands of yuan—one user reportedly充值近14万元 (recharged nearly 140,000 yuan) without meeting their match—highlighting the model’s revenue potential. This reliance on gift-sharing has propelled Yi Dui to become China’s most profitable dating app, but it also raises questions about sustainability and ethical practices.
Market Position and Competitive Landscape
Industry Rankings and User Metrics
According to CIC Consulting, Yi Dui holds the top spot in China’s online emotional social market by revenue, despite ranking fourth in monthly active users. This discrepancy suggests a highly monetized user base, with average spending per user far exceeding industry norms. The app’s focus on video and host-guided interactions has carved a niche that appeals to older demographics seeking serious relationships, unlike casual dating apps. In contrast, competitors like Momo and Tantan rely more on advertising and one-time purchases, resulting in lower per-user revenue. Yi Dui’s ability to monetize engagement through recurring gift purchases cements its position as China’s most profitable dating app, with half-year revenues of 15 billion yuan from Yi Dui alone.
Global Expansion and Localized Offerings
Milian Technology has extended its reach beyond China with apps like HiFami and Seeta, tailored for international markets. These platforms adapt the host-guided model to cultural preferences, though they have yet to match Yi Dui’s financial performance. The company’s overseas strategy focuses on regions with growing digital adoption, such as Southeast Asia, where social entertainment apps are gaining traction. However, regulatory differences and competition from global giants like Tinder pose challenges. For now, Yi Dui’s dominance in China remains the cornerstone of Milian’s valuation, reinforcing its identity as China’s most profitable dating app and a key asset for its IPO.
Challenges and Controversies
User Complaints and Induced Spending Allegations
Despite its financial success, Yi Dui faces scrutiny over business practices, particularly regarding induced consumption. On platforms like Black Cat Complaint, users have filed over 2,537 complaints, citing rules like “亲密度满1000可交换联系方式” (intimacy level 1000 required for contact exchange) that encourage excessive spending. One case involved a user spending over 50,000 yuan in a month, while another accumulated charges of nearly 140,000 yuan for video chats priced at 12 yuan per minute. These incidents reflect concerns that Yi Dui operates more like a live-streaming entertainment app than a genuine matchmaking service, potentially undermining long-term trust. Addressing these issues is critical as Milian positions itself as China’s most profitable dating app for public markets.
Regulatory Scrutiny and Compliance Hurdles
In 2022, China’s Ministry of Industry and Information Technology (工业和信息化部) flagged Yi Dui for violations including excessive data collection and forced定向推送 (directional push) features. Such regulatory actions are common in China’s tightened tech environment, where apps must adhere to strict data privacy laws under the Personal Information Protection Law (个人信息保护法). For Milian, compliance is essential to avoid fines or operational disruptions, especially as it eyes an IPO. Investors should monitor how the company balances innovation with regulatory adherence, as any missteps could impact its valuation and the perception of China’s most profitable dating app.
Capital Backing and IPO Prospects
Investment Rounds and Key Shareholders
Milian Technology has raised four rounds of funding from top-tier investors, including BlueRun Ventures, XVC, Cloud9 Capital, and LightSource Innovation Fund. Notably, strategic backers like Xiaomi and Shunwei Capital—affiliated with Lei Jun (雷军)—provide not only capital but also industry connections. These investments validate the company’s growth trajectory and have fueled its expansion into new markets. The diverse shareholder base, which also includes CMB International, signals confidence in Yi Dui’s model and its potential to sustain its title as China’s most profitable dating app. As Milian prepares for its Hong Kong listing, this backing could attract further institutional interest.
IPO Strategy and Market Implications
The planned Hong Kong IPO aligns with a trend of Chinese tech firms seeking listings abroad amid domestic regulatory uncertainties. A successful offering would provide capital for technology upgrades, marketing, and potential acquisitions, helping Yi Dui maintain its competitive edge. However, investors should weigh the app’s high profitability against risks like user churn and regulatory pressures. The IPO’s performance could also influence valuations for similar social entertainment companies, highlighting the broader significance of China’s most profitable dating app. For global fund managers, this represents an opportunity to tap into China’s digital consumption growth, but due diligence on operational ethics is advised.
Navigating the Future of Digital Romance in China
Yi Dui’s journey from a startup to China’s most profitable dating app underscores the immense potential of niche social platforms in the country’s tech ecosystem. Its innovative use of video and host-guided interactions has redefined online matchmaking, driving remarkable revenue growth. However, controversies around induced spending and regulatory compliance present ongoing challenges that could affect its IPO success and long-term sustainability. As Milian Technology moves toward public markets, investors should closely monitor user sentiment, regulatory updates, and competitive dynamics. For those looking to capitalize on China’s evolving digital landscape, understanding the mechanics behind China’s most profitable dating app is essential. Stay informed on this developing story by subscribing to our market insights for real-time analysis on Asian tech IPOs.