The social media platform Soul plans to list on the Hong Kong Stock Exchange. Meanwhile, its prospectus shows that revenue increased by 157% year-over-year in 2021.

Chinese online social media platform Soul filed for an IPO on the Hong Kong Stock Exchange on June 30. Bank of America and CICC acted as co-sponsors. According to its prospectus, the firm recorded a revenue of CNY 1.28 billion in 2021, a surge of 157% year-over-year. Additionally, the company's gross profit margin reached 85%.

Launched in 2016, Soul has become the dark horse in the social media field with innovative product features such as ‘soul-matching,' interest mapping to build deep social relationships, and gameplay. It is considered as a virtual amusement park for Generation Z.

These innovative features drove user growth. In 2021, its monthly active users (MAUs) reached 31.6 million people, representing an increase of 51% year-over-year. At the same time, user stickiness is also high. 59% of all users on Soul’s platform are highly active as of 2021.

User engagement is an important measure of a thriving community. High interactivity further motivates users' willingness to post, forming a cycle of content production and consumption, which ultimately brings about great enrichment to the platform's ecosystem. In 2021, Soul users generated over 790 million new pieces of content, of which 35.9% was from monthly active users.

In terms of its business model, Soul mainly earns revenue through virtual props, membership subscriptions, and other value-added services. In addition, Soul is utilizing its open platform capabilities to expand into the business side of things in a variety of ways.

In the future, the company plans to use the proceeds from the IPO to improve and upgrade proprietary technology, data analytics capabilities, and develop the social metaverse.

Nonetheless, the social media industry is highly competitive in China. Numerous domestic rivals such as Uki, Tantan, and MOMO are looking for more shares and profit in the market.