Line backs Japan's Gumi, launches $100m developer fund

Set up in 2007, Tokyo-headquartered Gumi has developed a range of successful social mobile games including gangster-themed role-playing game (RPG) Yakuza Wars and hit fantasy adventure game Brave Frontier. The business employs 800 people and has bases in South Korea, Singapore, China, France and the US.

This latest deal brings the company's total fundraising past $100 million. It raised a $50 million round of funding led by World Innovation Lab (WiL) as recently as last month. The company's other backers include East Ventures, B Dash Ventures, DBJ Capital, Jafco Asia and Nissei Capital.

This latest transaction comes after Line recently revealed plans to go public in Tokyo and New York. Gumi is also planning have its Tokyo IPO as early as December. The deal will enable Line to improve it gaming offering while giving Gumi access to Line's user base. 

Line was originally created for the Japanese market by South Korea's Naver Corp. after the 2011 earthquake and tsunami in northeastern Japan had destroyed telephone services. The app now claims to have over 490 million users in at least 230 countries. It generate revenue by  selling added features such as stickers, games, free voice and video calling and photo and video sharing.

Line's chief strategy and marketing officer Jun Masuda - who announced the deal at recent event in Tokyo - also revealed his company's plans to launch a JPY100 billion ($98 million) fund to invest in Japanese game developers. The fund is tentatively named Line Game Global Gateway and will be managed by Line Ventures, a the firm's new established venture capital unit. 

 

 

 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Fundraising
• Technology
• Technology
• South Korea
• Japan
• Fundraising