Outdoor advertising firm Focus Media has led a RMB640m ($96m) funding round for China-based eSports promoter Hero Sports, China Money Network reported today, citing a securities filing.
Focus paid $45m for an 8.2% stake in Hero Sports through subsidiary Gongqing Focus Chuangxiang Information Technology, according to Marbridge Consulting, and participated in the round, which valued the company at about $540m, alongside DMG Cultural Industrial Fund and Yongtong Fund.
Spun out of game publisher Hero Entertainment in May this year, Hero Sports operates an eSports platform it claims has around 400 million registered users, 50 million of which are active on a daily basis. Hero retains a 35.9% stake after the round.
The funding will be used to expand the company’s eSports contests and its network of gaming centres. In addition to its financial backing, Focus intends to use its advertising business to help bring new young users to the platform.
Hero Sports also intends to enhance its league, dubbed Hero Pro League, by adding virtual reality to it this year. It signed a partnership agreement with US-based Virtuix earlier this month to add the Virtuix Omni, a VR treadmill that enables users to walk, run or jump as part of a game, to its centres.