Migme raises $6m in fresh funding from investors, including Indonesia’s MNC Group

Digital media company Migme has raised US$6.2 million more in fresh funds from strategic investors, it announced over the weekend.

The company first revealed that it was trying to raise the amount in a disclosure to the Australian Securities Exchange (ASX) on August 2 (Tech in Asia also reported on this).

In an update submitted to the ASX on August 19, Migme said it finally closed the deal with sophisticated investors. Those investors include FIH Mobile Limited, a unit of Taiwan-based Foxconn that manufactures handsets; major Indonesian media company MNC Group; and Malcolm Steinberg of LAI Group, which owns the Timezone chain of arcade centers.

This brought the total funding the company raised for this round to about US$7.7 million, which includes the US$1.5 million it secured from Chinese mobile app developer Meitu on July 7.

The company expects trading in its stock to resume any moment after being suspended since June 30.

CEO Steven Goh said the funds would be used to finance the company’s expenditures and attain cash flow positive operations by early 2017 – “subject to business and market risks.”

Migme owns a social entertainment platform where users can chat, post bite-sized blogs, play games, and exchange virtual gifts with each other. It generates revenue from gifts, emoticons, stickers, avatar items, and games.

Marketing to Android users

Migme also recently announced that it has tied up with Taipei-based accelerator MOX to market its platform by including it in MOX’s software development kits. MOX, which stands for “Mobile-Only Accelerator”, enables apps from around the world to reach over 135 million Android mobile users through its strategic partnerships in the mobile industry. It is one of six global accelerators operated by SOSV, a venture capital fund managing US$250 million in assets.

The deal will allow Migme to be promoted to Android users and in exchange, Migme will issue SOSV with “1 percent of Migme’s issued shares and share revenues earned on the MOX platform.”

Converted from Australian dollars. Rate: US$1 = A$1.32.

(First posted on August 2 and updated on August 22 to indicate that Migme has completed the capital raising exercise.)