Bertelsmann Asia Investment Fund, a division of Germany-based media conglomerate Bertelsmann, has invested alongside venture capital investor Sequoia Capital in a series B round for Mo9, a mobile-based credit service geared up for online gamers. The deal is worth millions of dollars, but financial details of the series A and B rounds have been kept undisclosed. News of the deal was first reported in late August.
The company was founded by a group of former PayPal employees and is run by China company, Gamax Interactive, but the company is based in San Francisco.
It enables users to play games first, and then pay back any outstanding bills they may have accumulated. The bills must be paid back within a 7 day period. However, users who build up a higher credit rating, in a credit system based on account records, are likely to receive higher credit lines, according to gaming news site, PocketGamer.biz.
According to the news report, the service has been attracting users on a global scale, perhaps as a result of its easy registration process, where only a telephone number is needed to set up an account.
Mo9 reportedly has hundreds of thousands of active users, with the service covering over 50 games in China, while also providing services in the US, Canada, Australia, Brazil, Germany, and Malaysia, said PocketGamer.