Kakao Games, a games developer spun out from South Korea-based messaging firm Kakao, has raised $130m in funding from investors including internet group Tencent, TechCrunch reported today.
Tencent participated through two unnamed subsidiaries and was joined by mobile game publisher Netmarble, game development studios Actozsoft and Bluehole, and mergers and acquisitions fund Premier Growth.
Nikkei Asian Review placed the size of Tencent’s commitment at $46.4m but reported that only one unit of Tencent took part in the deal.
Kakao Games was spun out of Kakao in 2017, having begun life as Daum Games, a subsidiary of Daum Communications, the internet portal that merged with Kakao in 2014.
The company develops games for multiple platforms including the PC, mobile devices and virtual reality. It also helps Korea-based developers to market their games overseas.
The funding will reportedly go towards international expansion efforts. The company is also considering opportunities including strategic acquisitions of other businesses.
The cash injection comes ahead of an initial public offering expected to take place this year, after an announcement in September 2017. The company has already named Korea Investment and Securities as a lead manager for the IPO.
Kakao Games is one of several Kakao spinouts that have received funding recently. Other deals have included a $437m funding round for transport-focused spinout Kakao Mobility in July 2017 and a $200m deal for mobile finance subsidiary Kakao Pay in February 2017.