Japan’s MIXI Launches $50 Mn CVC Fund For Indian Digital Entertainment Startups

Japanese mobile entertainment company MIXI on Tuesday announced the launch of a $50 Mn (about INR 414 Cr) corporate venture capital (CVC) fund in India to invest in early stage entertainment and consumer services startups.

The CVC fund will invest in seed to Pre-Series B startups in the country, with a particular focus on Series A and Pre-Series A investments.

A CVC fund is an investment vehicle of a corporation to invest in startups or other funds.

Speaking to Inc42, Tomoharu Urabe, principal partner at MIXI Global Investments, said the CVC fund is looking to invest in about 30 startups over the next three to four years. Its ticket size would be in the range of $0.5 Mn-$2 Mn.

“We often get asked if we are strategic or financial investors… We position ourselves as financial investors in the entertainment space. But we have this mixed approach that while most of our investments need to be financial investments, in some cases, we also want to invest in startups that have a very good strategic context,” Urabe said.

The company has also initiated talks with some VC firms and their portfolio startups in the country and sees its first investment coming in 2023 itself.

MIXI has an existing CVC fund in Japan and is now looking to expand to markets outside the country.

“We are very happy to find out that digital entertainment in India continues to grow to become big. So, we believe that it is great timing for us to start our investment in India,” Urabe said, adding that MIXI Global Investments is keen on bringing its years of expertise in the country’s startup ecosystem and contributing to its growth.

MIXI is one of the limited partners (LPs) in India’s gaming and interactive media venture fund Lumikai.

MIXI, founded in 1997, has created several communication services since its inception. The company’s investment arm claims to have invested around 70 Bn yen ($492 Mn) between FY19-FY22 with the aim of developing new pillars of business and creating synergies with its existing businesses. 

MIXI is looking at investing in overseas markets, including emerging markets like India, to create global businesses and strengthen global synergies. It plans to use 30-50 Bn yen (about $211 Mn-$352 Mn) on mergers and acquisitions and capital and business alliances during the three year period from FY23-FY25.

Some of the most prominent CVCs in the Indian startup ecosystem include Google and Alexa Fund, as well as Indian CVCs like Times Group’s Brand Capital, Mahindra Partners, and Reliance Ventures.

So far, over 300 startups in India have got backing from CVC funds since 2014.