MIXI from Japan Launches $50 Million CVC Fund to Back Digital Entertainment Startups in India
Three points you will get to know in this article:
- The CVC fund targets early-stage entertainment and consumer services startups, emphasizing Series A and Pre-Series A investments.
- The fund plans to invest $0.5 Mn to $2 Mn in approximately 30 startups over the next three to four years.
- Mobile entertainment company MIXI was founded in 2017 and has created several communication services since its inception.
In 2017, MIXI, a dynamic mobile entertainment enterprise, was established, embarking on a journey to craft a multitude of user-centric communication offerings.
On Tuesday, MIXI, a mobile entertainment company from Japan, revealed its plan to introduce a $50 million (approximately INR 414 crore) corporate venture capital (CVC) fund in India. This fund aims to support fledgling entertainment and consumer services startups at their early stages.
The CVC fund is dedicated to backing startups from seed to Pre-Series B stages within the country. It places special emphasis on investments during Series A and Pre-Series A phases, all while ensuring a one-of-a-kind and intuitive approach.
Tomoharu Urabe, who holds the role of principal partner at MIXI Global Investments, mentioned that the CVC fund aims to back approximately 30 startups in the upcoming three to four years. The investment amount per startup would fall within the bracket of $0.5 million to $2 million.
We frequently encounter inquiries about whether we lean towards being strategic or financial investors. Our stance is that we primarily identify as financial investors within the realm of entertainment. However, our approach is a blend, where the majority of our investments are driven by financial considerations, yet occasionally, we are inclined to support startups that exhibit strong strategic potential,” stated Urabe.
Furthermore, the company has commenced discussions with several venture capital firms and the startups within their portfolios in the region. The company envisions its inaugural investment taking place in the year 2023 itself, marking a distinctive and user-friendly approach.
MIXI currently maintains a CVC fund in Japan and is now eyeing the expansion into international markets beyond its borders.
We are delighted to witness the remarkable growth of digital entertainment in India. This propitious juncture has spurred us to embark on our investment journey in India,” stated Urabe. He emphasized that MIXI Global Investments is enthusiastic about leveraging its extensive experience within India’s startup ecosystem to foster its advancement.
Within India’s gaming and interactive media venture fund, Lumikai, MIXI stands as one of the exclusive limited partners (LPs).
Originating in 1997, MIXI has introduced a range of communication services over time. Its investment division asserts an infusion of approximately 70 billion yen ($492 million) between FY19 and FY22, aimed at cultivating fresh avenues of business while synergizing with its pre-existing enterprises.
MIXI is actively exploring opportunities to invest in international markets, particularly in emerging economies like India. This strategic move aims to establish global enterprises and enhance worldwide collaborations. The company has allocated a budget of 30-50 billion yen (equivalent to approximately $211 million-$352 million) for mergers, acquisitions, and partnerships over the upcoming three-year span from FY23 to FY25.
Prominent corporate venture capital (CVC) players in the Indian startup landscape encompass renowned names such as Google and Alexa Fund. Additionally, Indian CVC entities like Times Group’s Brand Capital, Mahindra Partners, and Reliance Ventures contribute to the vibrant ecosystem.
A significant milestone has been achieved, with more than 300 Indian startups receiving substantial support from CVC funds since 2014.
MIXI’s announcement of a $50 million corporate venture capital fund for Indian startups underscores its commitment to fostering innovation and growth in the entertainment and consumer services sector. With a focus on early-stage investments and a unique blend of financial and strategic considerations, MIXI is poised to make a significant impact on the Indian startup ecosystem. As they embark on this investment journey in India, their extensive experience and global vision promise to contribute to the continued evolution of the digital entertainment landscape in the country.
