Leading Chinese photo and video app developer Meitu has now become a substantial shareholder (anyone holding more than 5 per cent of the company’s voting rights) in migme after investing AUD 2,018,428 (US$1.5 million) at AUD 0.40 per share into the Singapore-based and ASX-listed social entertainment company.
In March this year, Meitu made an initial AUD 6.99 million (US$5.12 million) investment in migme through an allocation of 11,650,000 shares at AUD 0.60 (US$0.44) each.
A spokesman for migme told e27 there are no specific details on how the funding will be used yet; but, said it will be ramping up integration of all its businesses including e-commerce, hipwee, alivenotdead and games into one platform and building it into a business model that creates premium engagement between users and content creators.
Foxconn, who owns 19 per cent of shares in migme will also help it to create a “great synergy between hardware and software”, though no details are specified.
The spokesman also said this move suggests that Meitu is on a steady course to increase its presence in key Southeast Asian markets such India, Indonesia and the Philippines. In March,
In March, migme said the goal was “to implement the sharing of content across the Meitu and migme platforms, localisation, joint and cross marketing initiatives for migme’s key markets in the South and Southeast Asian region”.
In addition, Meitu could also be laying the groundwork for a possible IPO.
Since the MOU in March, migme has already integrated Meitu’s beauty apps into its platform. Their joint effort focusses on leveraging complementary member base to increase users and revenue for both companies.