Chinese conglomerate Tencent Holdings Inc. (HKEX: 0700) and Indian e-commerce company Paytm were expected to jointly invest about $100 million in Indian streaming service MX Player, according to Bloomberg today.
The investment was reported to be in the final round among Tencent and its Indian partner Paytm, which runs e-commerce payment system and digital wallet locally and the investee company of MX Player, citing unnamed sources to Bloomberg. Officers from those three companies declined to comment to Bloomberg.
MX Player with 30 million registered users was a video player developed by South Korea-based company J2 Interactive and then bought by Times Internet, the digital media management arm of The Times Group. The Times Group, India's largest media conglomerate, bought MX player for $140 million.
“To put the number of users in context, 70 million daily active users in India is literally the population of many European countries,” Karan Bedi, chief executive officer of MX Player said to Moumita Bhattacharjee, journalist from exchange4media.com in Feburary.
Tencent competes tech giants from western countries and its Chinese competitors in the field of streaming services in India. Hotstar, owned by Walt Disney Co. (NYSE: DIS) plays a role as the market leader with 300 million monthly active users in India in April. Google-owned YouTube said it had about 265 million monthly active users in India in April.
Alibaba Group Holding Ltd. (NYSE: BABA) announced in May that it is backing Vmate with $100 million. Vmate is an Indian social video app launched in 2016 and it has 30 million monthly active users globally. Vmate's rival TikTok, a Chinese unicorn with a valuation of about $75 billion operated by ByteDance for creating and sharing short videos outside China, has 120 million monthly active users in India, according to techcrunch.com.