A senior executive at TikTok owner ByteDance said that the company plans to invest “a huge amount” of capital into its newly-established educational technology business but warned that the unit will be unlikely to profit in the next three years.
The company has made educational technology one of its top priorities alongside short video app TikTok, which is facing scrutiny in Washington over suspicions China could force the company to turn over user data.
According to a transcript published by the company on social media, the senior vice president at ByteDance, Chen Lin, said in an internal speech that the company entered the educational technology sector in 2016 via investments and trying out various projects.
The company’s revenue mainly comes from its Chinese short video app Douyin and news aggregator Jinri Toutiao. The company is a late entrant to China’s educational technology market, as industry leader Yuanfudao was founded in 2012 and rival Zuoyebang started up in 2013.
The industry was one of a few sectors that saw its fortunes shine during the coronavirus pandemic as widespread lockdowns in China and school closures forced students to take online classes from home for many months.