The Rise of Kuaishou: From a GIF Tool to China’s Leading Short‑Video Empire

After a decade of relentless effort, Kuaishou has transformed from a unicorn startup into China’s fifth‑largest listed internet company, trailing only Tencent, Alibaba, Meituan and Pinduoduo.

In the short‑video arena, Kuaishou became the first Chinese short‑video IPO on the Hong Kong Stock Exchange on February 5, opening the capital market door for short‑video platforms.

On its debut day the stock opened 193.91% higher, giving the company a market value of ¥1.3 trillion and making founders Su Hua and Cheng Yixiao each worth over HK$100 billion.

Founder Cheng Yixiao, a Northeastern University software graduate, began his career at HP, then moved to Renren where he developed the iPhone client. In 2011 he left Renren, rented a modest apartment in Beijing’s Tongtianyuan community, and spent months building a GIF‑generation tool called “GIF Kuaishou”.

After a 2 million‑RMB investment from Morning Star Capital’s Zhang Fei, Cheng recruited former HP colleague Yang Yuanxi and classmate Yin Xin, forming the initial Kuaishou team.

Cheng’s product was simple – only three buttons (Follow, Discover, City) – deliberately designed so users of any age or education could operate it.

Co‑founder Su Hua, originally from a poor village in Hunan, excelled academically, entered Tsinghua University’s mechanical program, switched to software, and later pursued a PhD in computer science before leaving to join Google with a HK$150 k annual salary.

At Google Su was exposed to AI and machine‑learning technologies, which later influenced his product vision. He left Google during the 2008 Asian financial crisis to pursue entrepreneurship, experiencing numerous failures before joining Baidu as a core engineer for the Fengchao system.

In 2013 Cheng and Su met through Morning Star’s Zhang Fei, instantly clicking and deciding to collaborate. They merged their teams, moved into a tiny 10 m² office in Wudaokou, and in October 2013 pivoted GIF Kuaishou into a short‑video social platform, rapidly boosting daily active users.

By 2016 a viral article brought Kuaishou into the public eye, and the platform’s user base exploded during the mobile‑internet traffic‑boom, reaching over 600 million users and 65 million daily active users by 2017.

In 2018 the platform faced a major crisis when a “under‑age livestreamer mother” incident was highlighted by CCTV, prompting a public apology and internal reflection on community values and algorithmic bias.

Following the controversy, Kuaishou launched the “K3 campaign”, released a fast‑light version, a TV‑screen version, acquired A‑Station, and expanded into live streaming, e‑commerce, and AI‑enhanced features, while attracting celebrities such as Jay Chou and Zhang Jie.

In 2020 Kuaishou partnered with the Spring Festival Gala, spending ¥1 billion on red‑packet promotions, achieving 639 billion interactions, though still trailing TikTok’s daily active users.

Finally, in 2020 Kuaishou listed on the Hong Kong Stock Exchange with a valuation of ¥1.3 trillion, cementing its status as a short‑video empire that records everyday life and promotes equal representation.

Su Hua’s vision is that Kuaishou serves as a mirror reflecting the world’s full and accurate picture, offering a platform where ordinary people can be seen, heard, and potentially change their destinies.

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