Xiaomi Marks First Investment in India

NicoleMotta on Monday April 4, 2016 at 12:30:32 PM

Xiaomi Marks First Investment in India

Chinese tech company Xiaomi has led a $25 million investment in Hungama Digital Media Entertainment.

On Monday, Xiaomi announced the investment in the video and music streaming service, and revealed its plans to incorporate some of Hungama's content services "in the near future." This content will include themes and ringtones for Xiaomi's devices. Hungama boasts 65 million active customers across its music, video, and movie platforms. Despite the fact that Hungama offers movies and videos, Xiaomi did not talk about any upcoming video integrations. Hugo Barra, Vice President of Xiaomi, said that the company hopes its investment in Hungama will help deepen Xiaomi's "understanding of the content sector in India." Xiaomi launched in India back in July 2014 and started local manufacturing a year later. According to Xiaomi, more than 75 percent of smartphones sold in India are made in India.

While Xiaomi led the investment round in Hungama, it was not the only investor. Existing Hungama investors also participated in the round of funding, including Intel Capital, Bessemer Venture Partners, and Indian billionaire investor Rakesh Jhunjhunwala. Last year, Hungama was reportedly seeking a $100 million funding round, but the company was not able to meet this lofty goal. Hungama CEO, Neeraj Roy, said that the financing never happened, as the company opted for a $25 million investment round instead. In a statement, Roy said that Hungama plans to use this funding to increase its movie and TV services, and that Hungama Play will soon add 1,500 hours of TV content in Indian languages and in English.

Photo: © iStock.


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