One of the most valuable startups in the world, Xiaomi, announced today its first ever investment in Hungama Digital Media Entertainment, India’s largest digital media company. The US $25 million funding round was carried out with existing investors like Intel Capital, Bessemer Venture Partners and billionaire Rakesh Jhunjhunwala.
With this investment, Xiaomi will be integrating the Hungama services like VoD, ringtones etc. in its upcoming products. Although there is no specific timeline as of now, Hugo Barra, VP Xiaomi, told PTI:
Our Video on Demand (VoD) service in China has 100 million installs and 30 million daily active users. 4G has played a major role in this. India is now on the verge of witnessing a similar data explosion and we wanted to ensure that we have a big play in this segment
“With this investment, we intend to further strengthen our movie and TV services and in fact, Hungama Play will shortly add 1,500 hours of TV content in Indian languages and English,” said Neeraj Roy, founder and CEO of Hungama.
Hungama has partnerships with over 700 content creators, and has over 8,000 movies in Hindi, Tamil, Telugu, Malayalam, Bengali, Punjabi and six other Indian regional languages on its platform. Over 65 million monthly active consumers access Hungama across platforms for its music, video and movie services.
This is the first investment by Xiaomi in an Indian company. Xiaomi entered the Indian markets in July 2014 and has since then promoted itself as being committed to the demands of Indian consumers and boosting the economy of the nation. The smartphone manufacturer has also set up its own manufacturing unit in accordance to Make In India program and over 75% of its current handsets are manufactured in India.