Mobile ad startup AppLovin announced on Monday it is selling a major stake to Chinese private equity firm Orient Hontai Capital for a staggering $1.42 billion, Fortune reported.

The recent agreement is a big win for AppLovin, which only raised a mere $4 million funding from angel investors, before it moved into profitability within its first month of operation, Recode noted. At the end of its first year of operations, the company was doing a monthly revenue of more than $1 million.

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"This level of investment validates the outstanding product we've built. What's more, is the significance for the entire advertising industry given this is the most sizable outcome for a mobile advertising company ever," Adam Foroughi, AppLovin's CEO, said.

According to CMS Wire, AppLovin avoided the venture capital funding route, but Foroughi thought the company needs personal resources to bootstrap the launch.

"So I put together a round with angels not really because we needed the cash, but because I thought these were influential people who could help us grow," he said.  The angel investment came from investors such as Eduardo Vivas of Bright.com and LinkedIn; John Burbank of Passport Capital; and Webb Investment Network, founded by Maynard Webb of Salesforce, Visa, and Everwise. 

Meanwhile, following the sale, AppLovin's headquarters will remain in Palo Alto. Furthermore, "the core of AppLovin remains and endures: our vision, culture, industry leadership, valued customers and team," TechCruch reported.

The deal is also subject to regulatory approval and is expected to close in the fourth quarter this year.

AppLovin is a mobile marketing tech firm that helps advertisers reach their targets and deliver personalized ads to audience who are similar to their existing user base. In 2015, it generated a revenue of $234 million, and the figure is expected to at least double this year.

TagsAppLovin, digital marketing, digital ads, advertising, Orient Hontai Capital, acquisitions, mobile advertising, Adam Foroughi