ByteDance, owner of news aggregator Jinri Toutiao, is in talks with investors including major Chinese government-led funds and state-owned investment banks, the report said.
This comes after ByteDance faced mounting scrutiny from China's internet censors earlier in the year, with Toutiao temporarily taken off app stores for a cleanup in April while a separate app for jokes was permanently shut.
Building closer relationships with state-backed investors could be beneficial for ByteDance, whose apps in China have run afoul of the country's regulators, it noted.
Reuters reported in August ByteDance aimed to raise about $3 billion in a funding round, valuing the company as high as $75 billion. ByteDance said it had no comment to offer on the matter.