Meitu becomes substantial shareholder of Migme after follow-on investment

Digital media company Migme today announced it has received an additional US$1.5 million investment from Meitu, a Chinese company well-known for its photo and video editing apps.

That new funding makes Meitu a substantial shareholder of the Singapore-based company, Migme said in a disclosure filed with the Australian Securities Exchange (ASX), without providing details. By ASX’s definition, a substantial shareholder holds more than 5 percent of a company’s voting rights.

“Further information concerning the company’s capital raising will be announced […] on or prior to the commencement of trading on July 12, 2016,” it noted.

Migme first raised funds from the Chinese company in March. That investment amounted to US$5 million and gave Meitu just under 5 percent ownership in the company.

Migme owns social entertainment apps Migme and LoveByte, artist management platform Alivenotdead, and ecommerce platform Sold.

The company made big moves in Indonesia last year, acquiring social news site Hipwee and Indonesian fashion estore Shopdeca.

It raised its revenue by 525 percent to US$8.7 million in 2015 from the year before, helping trim its net loss by 27 percent to US$14.9 million. It also grew its monthly active users to 32 million, a 220 percent jump from 2014.