Intel Capital, the venture capital arm of Intel Corporation, has put in a fresh investment in Mumbai based digital entertainment company Hungama. The investment is specifically into Hungama.com, which will own the music tracks, movies, music videos and mobile content. The amount has not been disclosed.
The investment is a part of the $40 million bulk amount that the VC firm has decided to invest in 10 innovative companies across the globe. The portfolio of companies spreads across a range of technologies from collaborating in the cloud and delivering enhanced digital entertainment to simplifying mobile payments and enabling new forms of device interaction.
Sudheer Kuppam, managing director at Intel Capital, APAC and Japan, said , “Hungama.com is a great example of an innovative Indian company. It has become India’s largest on-demand digital entertainment storefront, which serves audio, video and imagery to South Asians across the world. We’ve been aware of Hungama.com’s success for some time. We will work with the company to develop the brand and building upon the success it has found in India by taking the venture global.” The business model of Hungama.com is similar to that of Netflix, which is an American provider of on-demand Internet streaming media in the US, Canada, Latin America, the Caribbean, UK and Ireland and flat rate DVD-by-mail in the US.
Neeraj Roy, chairman, Hungama.com said, “We have been working with Intel Corp over the last few years. As a company we are delighted to have Intel Capital partner with us on the Hungama.com opportunity.” He said Hungama.com is the only platform-agnostic digital entertainment storefront that caters to over 1.5 billion South Asians worldwide, via mobile, internet, connected devices, DTH and retail.
Recently, Hungama.com launched its on demand Bollywood movies service, Hungama Movies, in the UAE and the Middle East. In addition to these countries, the company also plans to enter Singapore market in three weeks. It will be officially launched in the Middle East at the Intel booth at the Gitex Technology Week 2012.
Intel Capital has invested over $300 million in 80+ companies across 10 cities in India since 1998.
The prominent previous disclosed announcement by Intel Capital in the country was in May 2011, when the company had invested $18 million in two Indian companies – Policybazaar.com and Sudhir Srivastava Robotic Surgery Center. Other previous investments by Intel Capital in India include Yatra.com and July Systems.
(Edited by Prem Udayabhanu)