Singapore-based social app Migme has raised $1.5 million from Chinese photo sharing company Meitu at an issue price of $0.47 Migme per share into the Australian Securities Exchange (ASX). Meitu then becomes a major shareholder following the investment reports Deal Street Asia.
Earlier this March, Meitu invested $5 million in the social media tech company gaining just about 5% ownership. After this investment, its stake increase to 5.71%. ASX’s recognizes a firm as a substantial shareholder in another if it has more than 5% voting rights in the company.
With over 32 million monthly active users across Indonesia, Philippines and India, the strategic partnership is set to allow Meitu, whose 900 million users are predominantly from China, to leverage off Migme’s Southeast Asian audience base.
Listed on the ASX in 2014, Migme delivers social entertainment services through mobile apps Migme and LoveByte, artist management website Alivenotdead, Indonesian social news website Hipwee and fashion store Shopedeca, and ecommerce site Sold. The company has also announced the launch of the Migshop store in June, in a move to increase user engagement and revenue of its ecommerce offering.
Migme has offices in Malaysia, Indonesia, Taiwan and Hong Kong. In a report released earlier this year, the company revealed it raised its revenue by 525% year-on-year to $8.7 million, cutting losses to $14.7 million. It’s user pool also grew by 220%.
A version of this appeared in Deal Street Asia on July 7. Read the full article here.