Indian OTT platform, MX Player is reportedly carrying its funding round led by the Chinese tech firm, Tencent. The Shenzhen-headquartered firm is leading the funding round with INR 780 crore. With this investment, the video-streaming platform, MX Player has pegged at INR 3,545 crore, reported The Economic Times.
This is the foremost external fundraising of MX Player after its acquisition in 2018 by Times Internet, which also partook in the current funding round.
“MX Player was our most ambitious investment last year, and it has the potential to change mobile entertainment in India and the world. It plays an important role in Times Internet’s strategy of being the largest consumer platform in India, and we’re excited to have Tencent help us in this mission,” Satyan Gajwani, vice-chairman of Times Internet, said in an interview with The Economic Times.
Infusing Capital into MX Player
Another result of this infusion into MX Player would be increasing competition in the over the top (OTT) market. The online video-streaming platforms have immensely surged as the internet prices have gone down in the past years and in turn, accessing the Internet has become easier now.
It is the second time that the internet conglomerate firm, Tencent is funding a Times Internet-backed company. In February last year, the tech firm had led a $115 million in the music streaming platform, Gaana.
In 2018, MX Player, which was running as video playback application back then, was acquired by Times Internet from the Chinese firm, Zenjoy that calibrated firm at INR 1000 crore. The founder of Zenjoy, Kia Xia who is presently on the board of MX Player had purchased the firm from its South Korea-based founder of the video-streaming platform in 2016.
The company reportedly plans to employ the fresh capital to enhance its content portfolio by purchasing and generating original programming, going further in the entertainment segment and expanding its talent pool.
Tencent Unleashing its OTT Platform
Tencent Video, an OTT platform of Tencent, has been massively promoted by the parent company with its recent release in Thailand. By holding stakes in MX Player, the Chinese firm will be getting an additional benefit as it can smoothly enter in Indian OTT market.
Over the years, Tencent has turned into one of the biggest investment companies in the Indian market following its infusion in unicorn firms viz. Byju, Flipkart and Ola. In the current year, the company infused in B2B firms viz. OkCredit and Udaan.