Social media startup M17 raises $26.5m to fuel global expansion

Taiwanese social media firm M17 Entertainment said it has raised US$26.5 million in series D funding, led by Vertex Growth Fund, to fuel its global expansion plans.

Stonebridge Korea Unicorn Venture Fund, Innoven Capital Singapore, Kaga Electronics, and ASE Global Group also participated in the round, according to a statement.

Joseph Chua, CEO of M17 Entertainment / Photo credit: M17 Entertainment

M17 said it plans to use the new funds to support its growth strategy in Japan as well as its expansion into the US and other new key markets, such as the Middle East. “This new funding allows us to continue our mission of empowering artists around the world through our online livestreaming and social commerce platforms,” said M17 CEO Joseph Phua.

The company looks to capitalize on the increasing demand for a financially viable social platform for artists, as consumer preferences shift towards individualized on-demand viewing online.

In addition, the Covid-19 crisis has also boosted user demand for online content, with young artists seeking alternative income sources. During the past few months, M17 said it has seen record high artist and user onboarding, as well as increased user interaction.

Its lineup of live interactive platforms includes its flagship app 17Live (called Livit in English markets), livestreaming shopping platforms HandsUP and FBBuy, and Meme Live, an Asia Pacific-focused livestreaming platform that the company acquired late last year.

M17 previously intended to go public in the US two years ago. It was originally targeting US$115 million for its initial public offering, but dropped the amount to US$60.1 million during its roadshow. It then cancelled its listing on the day shares were supposed to begin trading.

See: M17’s ill-fated IPO: CEO reveals all

In 2019, the company was able to turn things around, achieving profitability with a topline growth of 70%.