Chinese venture capital firm Shunwei Capital is set to make its debut investment in India by putting in USD 2 million in gaming startup Mech Mocha. Shunwei, which was started by Xiaomi founder Lei Jun, is in advanced talks to pick up a stake in Mech Mocha along with venture capital firm Accel India.
Mech Mocha’s latest funding round is pegged at USD 3-4 million, though the final amount may change, said one source familiar with the matter. In December 2015, the startup had raised $1 million from e-commerce major Flipkart and seed-stage investor Blume Ventures.
“We are in talks with multiple investors, we have conversations going on but nothing has been closed or confirmed yet,” said Arpita Kapoor, co-founder of Mech Mocha. “It’s very early stage and we are still figuring out our strategy but we will be targeting games for the Indian market.”
Bengaluru-based Mech Mocha focusses on creating games with an Indian cultural context and is targeting segments ranging from children to housewives. Its first game, Chhota Bheem Himalayan Game, which targets small children and mothers, has seen over 3 million downloads. Of these users, 1 million are peak monthly active users.
Venture capital firms are increasingly investing in mobile gaming startups. In the past four months, SAIF Partners and IDG Ventures have invested USD 4 million in mobile gaming startup PlaySimple, which creates word, trivia and puzzle games targeted at players over the age of 20. Earlier, Japan-Singapore-based venture capital firm Rebright Partners had invested USD 500,000 in a seed round of mobile game publishing startup Flixy Games.
Source: ET India