Xiaomi Expands In India With Stake In Hungama

by CXOtoday News Desk    Apr 05, 2016

xiaomi

Xiaomi announced that it has led a $25 million investment into Hungama Digital Media Entertainment, India’s largest digital media entertainment company. Other participants in the round include existing investors Intel Capital, Bessemer Venture Partners, Rakesh Jhunjhunwala.

This is the first ever investment that Xiaomi has made in an Indian company. It marks the deepening of Xiaomi’s strategy to introduce localised Internet services, in particular content, on its smartphones in India. The move also further solidifies Xiaomi’s commitment in India.

According to Hugo Barra, Vice President, Xiaomi, “We think of smartphones as a platform for us to deliver Internet services, and this includes content. We are investing in Hungama not only to start integrating content into our smartphones, but also to grow together with them and deepen our understanding of the content sector in India. We have carefully selected Hungama because of what they are doing in terms of aggregating large amounts of content and delivering an amazing user experience.”

Hungama is into digital media entertainment since last 17 years. The company has constantly innovated and delivered differentiated, premium audio and video content to its consumers across web and mobile platforms, fuelling the company’s growth to becoming the largest overall digital platform in India. Hungama has over 65mn monthly active users across all its platforms, consuming a content base of over 3.5mn premium digital units across audio and video.

With this round of funding, Hungama will expand the content library and further invest in world class technology on its mobile app platforms Hungama Music for music and Hungama Play for premium video including movies, television and original series. Hungama will soon add over 1500 hours of television content along with original content to its current Hungama Play offering of over 8000 movies in English and 12 Indian languages.

Speaking about the funding round, Neeraj Roy, Founder & CEO - Hungama Digital Media Entertainment said: “India is adding 8 MN new consumers to the Internet each month with 90% of digital consumption being driven by mobile. Young Indians love their music and movies and the mobile will be the most used screen for this generation. Content will drive the next phase of Digital India and we are delighted to partner with Xiaomi as we prepare to bring premium and original digital entertainment to a 100 million Indians before the end of this year.”
“I have been invested into Hungama for several years and participated in this new capital raise as I believe they have built an unique leadership position with the most compelling music and movie OTT service for South Asians globally that is ripe for growth as India will embrace broadband and 4G. We welcome Xiaomi as one of our partners,” said Jhunjhunwala.
 
Citibank acted as exclusive financial advisor to Hungama on this transaction, said a press release.