China-based entertainment producer Huanxi Media Group has agreed to invest $50m in UK-based curated video streaming platform Mubi with a view to launching the service in China later this year.
Launched in 2007, Mubi runs an on-demand film streaming platform that focuses on high-quality arthouse cinema. Its service offers a revolving line up of 30 films each month to subscribers in more than 200 countries.
Huanxi will invest $40m for a 70% stake in the joint venture that will offer Mubi’s service in Chinaa, and will pay $10m for an 8% share of Mubi, valuing the company at $125m.
Mubi has now raised approximately $72m in total, according to press reports and securities filings. It secured $15m in a January 2015 series D round featuring venture capital firm MMC Ventures, White Star Capital, Floreat Group and a range of angel investors.
Founded in 2015 by Chinese film producer Dong Ping and directors Ning Hao and Xu Zheng, Huanxi’s cinematic output already includes Lost in Hong Kong, which has become the second-highest grossing Chinese language film ever released.
Speaking about Huanxi’s investment, Efe Cakarel, founder and CEO of Mubi, told CNBC: “China will overtake the US as the biggest film market next year but it is a difficulty country to navigate. We managed to crack this and this is why it is a big deal for the industry.”