The good news for Youku is that revenues, which are primarily driven by online advertising, continue to climb for the company. In the first nine months of 2010, Youku's revenues reached 234.6 million yuan ($35.3 million), an increase from 99.8 million yuan ($15 million) from the same period in 2009.

Youku is currently financed through private investors through which it has raised $110 million, it said.

Youku plans on using the proceeds from the IPO to invest in marketing, acquiring more videos, and develop its technology, infrastructure and products. An IPO price has yet to be fixed.