ByteDance’s Slack-like tool generated $100M in 2022

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Feishu, ByteDance’s workplace collaboration app, surpassed $100 cardinal successful yearly recurring gross past year, Xie Xin, nan main executive of Feishu, told unit Thursday, according to a personification acquainted pinch nan matter.

In precocious 2021, nan workplace instrumentality became 1 of nan firm’s six individual business groups, meaning it was fixed nan aforesaid strategical value arsenic different BGs astatine ByteDance, which see TikTok, Douyin, Dali (the acquisition BG), BytePlus (B2B AI and information infrastructure) and Nuverse (video games).

The milestone was first reported by nan Chinese tech news tract 36kr, conscionable a fewer days aft a arguable article by Leiphone, different Chinese news outlet, questioned Feishu’s rate burn. ARR mostly measures a package company’s subscription-based revenue.

Feishu, which has an world type called Lark, is an all-encompassing activity connection messenger pinch useful features from automatic notetaking for video calls and shared calendars to collaborative documents. Feishu spent plentifulness of resources building these functions itself, a opposition to Slack’s unfastened level that integrates pinch a myriad of third-party applications.

Doing everything in-house is conducive to delivering a frictionless personification experience, but it comes astatine a immense cost. At its highest successful 2022, Feishu had a headcount of 10,000 (including outsourced workers), according to nan Leiphone article. The Wall Street Journal reported that Feishu presently has 7,000 people.

For comparison, Slack reported 2,545 full-time labor and an yearly gross of $902.6 cardinal successful January 2021.

ByteDance’s dense finance successful Feishu is telling of nan authorities of endeavor package successful China. At a clip erstwhile Silicon Valley investors are heralding product-led growth — services that person users done their products, arsenic exemplified by Calendly — package successful China are still mostly counting connected sales, trading and services to enlistee users.

As a fistful of founders lamented to maine complete nan years, nan civilization of paying for SaaS hasn’t really arrived successful China yet, truthful galore of them are now stepping up overseas description . On nan proviso side, title is fierce. A generative AI laminitis shared their dilemma of operating an endeavor tech startup successful China, wherever nan return of investing successful little skilled labour still trumps that of spending connected tech talent:

“In nan U.S., you tin do reasonably good by building product-led software, which doesn’t trust connected quality services to get aliases clasp users. But successful China, moreover if you person a awesome product, your rival could bargain your root codification overnight and prosecute dozens of customer support staff, which don’t costs that much, to outrace you.”

Editor: Naga

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