Tencent eyes silver generation with investment in video app for dancing grannies

In public squares across China, groups of middle-aged women and seniors regularly gather at dusk and dawn to dance in unison to music blaring from loudspeakers.

But thanks to the internet, the public square is no longer their only stage. Tangdou, a social media app that teaches grannies and grandpas how to dance, has 200 million users in China – more than the population of Mexico and UK combined.

Tangdou, which means “jelly bean” in English, was launched in 2015 a by Beijing-based Xiaotang Technology as a dancing video app. It features tutorials that break down the choreography for a variety of dance styles including Chinese folk dance, jazz, ballroom, and even hip-hop.

While the instruction videos on Tangdou feature original choreography from professional dance teachers, users can post videos of themselves hoofing it, aided by filters that make their skin look fairer and body shape slimmer. They can also share pictures and text with connected friends on the app via a social media page named “Square.”

A mini app for Tangdou is available on Tencent Holdings’ WeChat, China’s ubiquitous messaging and do-everything app, from which users can buy costumes, cosmetics, and skincare products to improve their dance experience.

Photo credit: Entrackr

Investors are now embracing the potential of this huge demographic group. Tangdou announced Monday that it has raised a series C round of funding led by Chinese tech giant Tencent as well as existing backers including GGV Capital, IDG Capital, and Shunwei Capital, the fund backed by Lei Jun, founder and CEO of smartphone maker Xiaomi.

Tangdou did not disclose the size of the latest round, but said it has now raised nearly US$100 million. The company will further explore monetization through tourism, offline experiences, and other activities targeting the middle-aged and seniors, in addition to existing revenue generation from advertising and ecommerce, Zhang Yuan, Tangdou’s founder and CEO, said in the company statement.

While millennials are sought-after consumers, tech companies are also looking closely at internet-savvy senior citizens or the “silver generation,” whose numbers are growing through an ageing population.

China had 829 million internet users by the end of 2018, with 12.5% aged 50 and above, and 15.6% from 40 to 49. The percentages will rise as a quarter of the population is expected to be over 60 by 2030, according to a report by China’s State Council in 2017.

“Tangdou represents a new form of social activity exclusively for middle-aged and the elderly users,” Jeffery Li Zhaohui, managing partner of Tencent Investment, said in the statement. “We hope Tangdou can enrich their cultural and entertainment life [and become] a leading platform for this group.”

Senior citizens represent one of the fastest-growing demographic groups on WeChat, with 63 million of its more than 1 billion users aged over 55, the company said in January.

Tencent declined to comment on its Tangdou investment.

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