Chinese Internet Company Tencent Holdings Ltd. has bought around 20% stake in U.S. mobile games startup Pocket Gems Inc. The tie-up with the overseas game developers is an effort by startup to expand its mobile offerings in China.
Tencent is investing $60 million in the company and will be one of the board members of the games startup, as reported by WSJ.
Tencent has been aggressively acquiring stakes in gaming companies which are expected to play key roles in developing a platform for smartphone games in China. During April 2015 Tencent had purchased 14.6% stakes in The U.S. mobile game company Glu Mobile Inc. for a value of $126 million. In December 2014, the company had bought minority stakes in Japanese game developer Aiming Inc. for an undisclosed amount.
Tencent is a Chinese internet service portal offering internet, mobile, telecom, and online advertising services. The company distributes its mobile games through app stores and via its messaging applications such as WeChat and Mobile QQ.
In May 2015, a gaming startup Gameit raised a seed funding of $1.6 million from private angel investors along with DAK Capital. The app is a platform to turn online advertisements into interactive games. Education based gaming startup Nayi Disha also raised Rs 2 crore in seed funding. Another technology driven edu-gaming company LogicRoots raised angel funding of $400,000 through ah! Ventures’ investment platform CLUB ah! with participation from Calcutta Angels and 91SpringBoard.Category Investments Startups Technology