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<p id="E381"><span id="E-154">Migme</span><span id="E-155"> Limited or ASX:MIG (formerly mig33) is a global digital media company that provides social entertainment services. The company is headquartered in Singapore and aimed at emerging markets of South Asia, Southeast Asia, Africa and Middle East. </span><span id="E-156">Migme</span><span id="E-157"> and </span><span id="E-158">LoveByte</span><span id="E-159"> are its famous social entertainment apps and it also owns the artist management platform “</span><span id="E-160">Alivenotdead</span><span id="E-161">” and e-commerce platform </span><span id="E-162">“</span><span id="E-163">Sold</span><span id="E-164">”</span><span id="E-165">. The company works on </span><span id="E-166">freemium</span><span id="E-167"> business model and provides </span><span id="E-168">microblogging</span><span id="E-169">, chat, and other entertainment content to get new users. Its monetization model isn’t based on advertising, but in-app purchases which is a successful way of generating revenue for social networking and social gaming entertainment companies. The company uses vibrant virtual goods such as gifts, avatars, games, stickers and emoticons for monetization. Its services are accessible </span><span id="E-170">throughthe</span><span id="E-171"> desktop web as well as mobile platform (including </span><span id="E-172">iOS</span><span id="E-173"> and Google Play apps.) </span></p>
<p id="E424"><span id="E425">The undervalued </span><span id="E427">migme</span><span id="E429"> has experienced 40% quarter-on-quarter user growth. The platform currently has an average of more than 5 million users per month and growing. </span></p>
<p id="E430"><span id="E431">The company is registered in Australia and primarily listed on Australian Securities Exchange (ASX: MIG) and it also listed on Deutsche </span><span id="E433">Borse</span><span id="E435"> (WKN: A117AB). The company has about 100 employees and it has offices in Indonesia, Malaysia, Australia, Taiwan, and Hong Kong. </span></p>
<p id="E437"><span id="E438">History</span></p>
<p id="E440"><span id="E442">Migme</span><span id="E444"> was founded in December 2005 as mig33, in Perth Australia. Later in 2007, it shifted its operations to Silicon Valley, where it focused on groom</span><span id="E445">ing its </span></p>
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<p>technology capabilities and <span id="E447">steve</span><span id="E449"> Boom, the SVP of Yahoo joined MIG as CEO. </span><span id="E450">It acquired significant </span><span id="E451">users in emerging markets such </span><span id="E452">as South Asia, Southeast Asia, Africa and the Middle East. </span></p>
<p id="E453"><span id="E454">In June 2009, it became the most downloaded app and it was very famous on low-end java based phones. In September of the same year it s</span><span id="E455">hifted its gravity to Singapore</span><span id="E456"> to be closer to its key markets in Asia . D</span><span id="E457">uring the relocation of company, </span><span id="E459">Goh</span><span id="E461"> resumed the CEO title, and Steve Boom became executive chairman. The company at the time had 40 million registered users, including 4 million monthly active users. MIG built a good business with the help of billions of people who were using feature phones instead of smartphones. With the virtual gift business of MIG it witnessed 400 percent growth in second quarter of 2010.</span></p>
<p id="E462"><span id="E463">In July 2011, MIG launched a program for game developers to develop games for its platform that had reached more than 50 million users. In January 2012, MIG launched twitter like micro blogging feature for its 55 million user base. </span></p>
<p id="E464"><span id="E465">Through a complex deal in 2014, company </span><span id="E466">pivoted into new market and beca</span><span id="E467">me publicly traded company in Singapore</span><span id="E468">. The company was rebranded as </span><span id="E470">MigM</span><span id="E471">e</span><span id="E473"> and shifted from feature phones to Android devices. It went public in August 2010, and was listed on Australian </span><span id="E474">primary stock exchange ASX. Upon </span><span id="E475">this change of activities Steven </span><span id="E477">Goh</span><span id="E479"> said:</span></p>
<p id="E480"><span id="E481">“We believe in the opportunity to bulk mig33 up to something much more interesting now and being listed allows us to realize that opportunity. [We] looked </span><span id="E482">at Singapore and Australia [and believe that] Australia is a simpler, less risky, and easier path to getting there. Additionally, Australian tech companies </span></p>
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<p>are getting recognized valuation-wise and there is a history of billion dollar exits, whereas in Singapore the feedback is mixed.”</p>
<p id="E484"><span id="E485">In 2015, the company made big moves in Indonesia and acquired Indonesian fashion e-store </span><span id="E487">Shopdeca</span><span id="E489"> and social news site </span><span id="E491">Hipwee</span><span id="E493">. According to Mr. </span><span id="E495">Goh</span><span id="E497">, they spent 2015 building the “foundations” to further expand into Philippines and India soon. </span></p>
<p id="E498"><span id="E499">“In 2016, we plan to consolidate on our progress made last year and continue to grow monthly active users, … We will be focused on platform upgrades and the integration of the portfolio companies that we have acquired, with the view to improving operating margins later in the year.”</span></p>
<p id="E500"><span id="E501">Founders</span></p>
<p id="E502"><span id="E503">Steven </span><span id="E505">Goh</span><span id="E507"> </span></p>
<p id="E508"><span id="E510">Mr</span><span id="E512"> Steven is co-founder, CEO and Executive Director of </span><span id="E514">MigMe</span><span id="E516">. Steven holds a Bachelor of Commerce and an MBA from the UWA Perth. He has 20 years of experience in developing, commercializing internet services and fundraising. He is also founder of Sanford Securities and Bell Direct. He is also involved in a number of successful startups of throughout Australia, Asia, Europe and the USA. Steven worked in Australia with a wide range of financial institutions includes chartered accounting, stock brokering, consulting and investment banking. He has raised over US$ 100 million for companies he has led and founded. He has won many professional and business awards and he is recognized as an authority</span><span id="E517"> </span><span id="E518">on contemporary IT issues. </span></p>
<p id="E519"><span id="E520">He has one personal in</span><span id="E522">v</span><span id="E523">estment of worth $950k in JFDI </span><span id="E524">Asia</span></p>
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<p id="E525"><span id="E526">Mei Lin Ng</span></p>
<p id="E527"><span id="E528">Mei Lin, digital marketing and start up professional is co-founder and </span><span id="E529">VP marketing of </span><span id="E531">migme</span><span id="E533">. She co-founded </span><span id="E534">MIG</span><span id="E535"> in 2005 when “mobile social networks” were not known. She has a key role in building the consumer brand managing a team across the US, Asia and Africa. She has lived and worked across Asia, US, Europe and Australia in tech companies aimed at mobile, social games and financial service industries.</span></p>
<p id="E536"><span id="E537">Business Model</span></p>
<p id="E538"><span id="E539">MIG amalgamates the services of well-known social media networks with sp</span><span id="E540">ecial focus on emerging markets, </span><span id="E541">specifically the Asia Pacific. It offers </span><span id="E542">customized services to its targeted</span><span id="E543"> region and emphasizes</span><span id="E544"> on large population regions such as India, Indonesia. </span></p>
<p id="E545"><span id="E546">In its starting years MIG focused the segment of market with fast growing </span><span id="E548">teleconomies</span><span id="E550"> such as India and Indonesia, where feature phones were more common than expensive smartphones. MIG earned a good name and customer base by exploiting the overlooked world of feature phones. In the past when the smartphones were expensive and not common MIG was one of the many companies that lived in the often overlooked world of feature phones.</span></p>
<p id="E551"><span id="E552">In Jul</span><span id="E553">y 2009, MIG experimented with v</span><span id="E554">irtual gifts which is a non physical gift consisting animation of a picture of a gift item instead of the real gift item itself sent through the internet. By January 2010, every month some 1.5 million virtual gifts were being exchanged and currently about 150,000 virtual gifts are being exchanged on </span><span id="E556">migme</span><span id="E558"> every day. The company is getting revenue through selling </span><span id="E559">these virtual gifts. According to Steven in some countries the customers paying </span></p>
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<p>for virtual gifts are 3.5 percent on the other hand, there are some countries where this figure is close to 12 percent.</p>
<p id="E561"><span id="E562">MIG is also acquiring users rapidly by engaging its user base with an increasing pool of verified celebrities and artists. MIG drives the user number with the help of local celebrities who create and share content on </span><span id="E564">migme</span><span id="E566"> platform. The users who are engaged through celebrities spend more on premium virtual goods and gifts. Celebrities get the share in revenue which is generated through their fans on </span><span id="E568">migme</span><span id="E570">. This helps artists and celebrities to monetize their fan base, in areas where revenue has been eroded by widespread piracy.</span></p>
<p id="E571"><span id="E572">Funding and investments </span></p>
<p id="E573"><span id="E574">The digital mobile company has raised total $49.72M in seven rounds of investments. In the first round it raised US$10 million in funding led by </span><span id="E576">Accel</span><span id="E578"> Partners and </span><span id="E580">RedPoint</span><span id="E582"> Ventures, two well-known Silicon Valley venture capital firms. The series B round</span><span id="E583"> was</span><span id="E584"> led by DCM with participation from existing Series A investors </span><span id="E586">Accel</span><span id="E588">, </span><span id="E590">Redpoint</span><span id="E592"> and TVP the company pulled in US$13.5 million. The third round was led by Japan’s </span><span id="E594">Gree</span><span id="E596"> in which </span><span id="E598">migme</span><span id="E600"> raised US$8.9 million Indonesian telecom entrepreneur, </span><span id="E602">Sugialam</span><span id="E604">. An undisclosed amount was raised in Series D announced on August 1, 2012 from DMP VC. In 2014, </span><span id="E606">Foxconn</span><span id="E608">-linked handset company became the </span><span id="E610">migme&#8217;s</span><span id="E612"> largest shareholder through an investment of US$9.6 million, giving it a 20% stake in the company. In September 2015, in undisclosed series of venture MIG secured US$10 million in placement. In March 2016, </span><span id="E614">migme</span><span id="E616"> signed a Memorandum of Understanding with photo and video app developer </span><span id="E618">Meitu</span><span id="E620"> and placed 11,650,000 </span><span id="E622">migme</span><span id="E624"> shares to </span><span id="E626">Meitu</span><span id="E628"> at US$0.44 per share, raising US$ 5.12 million for the company</span><span id="E629"> </span></p>
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<p id="E630"><span id="E631">Competitors </span></p>
<p id="E633"><span id="E634">Blue Lion Mobile (QEEP)</span></p>
<p id="E635"><span id="E636">QEEP is a mobile social network app and multiplayer gaming platform launched in 2006. It was initially meant for Java mobile owners, but now any phone which as at least Java MDP 2.0, Android 2.3 or </span><span id="E638">iOS</span><span id="E640"> 8 supports QEEP. This free to download app is supported over 1,000 different model phones and is available in various languages. </span></p>
<p id="E641"><span id="E643">DeNA</span></p>
<p id="E645"><span id="E647">DeNA</span><span id="E649"> Co., Ltd. is a platform focused on social games, e-commerce and other internet services for mobile devices and PCs. Its current flagship business is </span><span id="E651">Mobage</span><span id="E653">, a mobile social games platform which offers first- and third-party games on four localized user networks across Japan, South Korea, China, and the West. </span><span id="E655">Mobage</span><span id="E657"> has over 40 million registered users in Japan with more than 1,800 titles. Currently it has over 1,600 employees worldwide working 15 cities across 11 countries and regions. The company generated more than US$1.8 billion in 2012. </span></p>
<p id="E658"><span id="E660">eBuddy</span></p>
<p id="E662"><span id="E664">eBuddy</span><span id="E666"> (formerly </span><span id="E668">eMessenger</span><span id="E670"> ) is a web and mobile messaging service that enable users of </span><span id="E672">Facebook</span><span id="E674"> Chat, Google Talk, MSN, Yahoo Messenger, AOL and ICQ accounts to chat free of cost in one aggregated interface. It started in 2003 and created the world’s first web browser based instant messaging services. Currently it has more than 30 million unique users that exchange over 17 billion messages per month. </span></p>
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<p id="E675"><span id="E677">Kakao</span><span id="E679"> Corp</span></p>
<p id="E680"><span id="E682">Kakao</span><span id="E685"> is a Korean company behind </span><span id="E687">KakaoTalk</span><span id="E689"> (sometimes </span><span id="E691">KaTalk</span><span id="E693">), which is both a messaging app and free call features. It also provides the platform for third party apps and games which user can download and play with their friends. It was launched in 2010 and currently it has 170 million users. This app is used by 93% of smartphone owners in South Korea. </span></p>
<p id="E694"><span id="E696">MocoSpace</span></p>
<p id="E698"><span id="E700">MocoSpace</span><span id="E702"> was founded in 2005 by mobile industry experts Jamie Hall and Justin Siegel. It is a mobile social network for social games and apps. It has over 100 million users who enjoy its services free of cost on </span><span id="E704">iOS</span><span id="E706">, Android, or any Web-enabled mobile phone. </span></p>
<p id="E707"><span id="E709">MocoSpace</span><span id="E711"> is a privately held company headquartered in Boston, MA.</span></p>
<p id="E712"><span id="E714">Nimbuzz</span></p>
<p id="E716"><span id="E718">Nimbuzz</span><span id="E720"> founded in 2007, it is an instant messaging aggregator for smartphones, tablets and PCs. It also offers free calls, instant messaging, social networking and social games. In addition, </span><span id="E722">Nimbuzz</span><span id="E724"> also offers cheap calling rates to most of countries in the world. It has 150 million users in 200 countries and it garners more than 210,000 new users per day.</span></p>
<p id="E725"><span id="E727">Tencent</span><span id="E729"> Holdings</span></p>
<p id="E730"><span id="E732">Tencent</span><span id="E734"> is a Chinese investment holding company whose subsidiaries provide social entertainment, value-added internet, web portals, e-commerce, multiplayer online games and online advertising services. </span><span id="E736">Tencent</span><span id="E738"> well known offering </span><span id="E740">Tencent</span><span id="E742"> QQ (instant messenger) has occupied largest market share in </span></p>
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<p>China.</p>
<p id="E744"><span id="E745">Acquisitions and Partners</span></p>
<p id="E747"><span id="E748">In February 2014, </span><span id="E750">migme</span><span id="E752"> made its first acquisition by buying </span><span id="E754">Alivenotdead</span><span id="E756">, which is a website that connects fans with the artists. </span><span id="E758">Alivenotdead</span><span id="E760"> was founded in 2007 by the co-founders of Rotten Tomatoes, a famous movie review site. The transaction details of this acquisition were not made public. Since the listing of MIG on ASX, it worked hard building up its social platform better and bigger. It acquired </span><span id="E762">LoveByte</span><span id="E764">, an app for </span><span id="E765">couples to chat in 2014</span><span id="E766">. It has also acquired Sold.sg for a mixture of shares and cash which added a playful </span><span id="E767">social e-commerce component to </span><span id="E769">m</span><span id="E770">igme’s</span><span id="E772"> virtual gifts and games platform. Early in 2016 it acquired the social news site </span><span id="E774">Hipwee</span><span id="E776"> owned and operated by Jakarta-based</span><span id="E777"> PT </span><span id="E779">Hipwee</span><span id="E781"> Media Solutions. </span><span id="E783">Migm</span><span id="E784">e</span><span id="E786"> completed the acquisition</span><span id="E787"> of</span><span id="E788"> </span><span id="E790">Shopdeca</span><span id="E792"> with c</span><span id="E793">ash payment of US$710,000 and a total of 884,270 </span><span id="E795">migme</span><span id="E797"> shares. </span><span id="E799">Shopdeca</span><span id="E801"> founder</span><span id="E802"> Andreas </span><span id="E804">Thamrin</span><span id="E806"> has joined </span><span id="E808">migm</span><span id="E809">e</span><span id="E811"> as Global Head of e-commerce to lead the expansion of its e-commerce operations. </span><span id="E813">Mr</span><span id="E815"> Steven said:</span></p>
<p id="E816"><span id="E817"> </span><span id="E818">“Platforms are the next generation of online business. The fastest growing and most disruptive companies in history — Google, Amazon, </span><span id="E820">Facebook</span><span id="E822">, </span><span id="E824">Uber</span><span id="E826">, </span><span id="E828">AirBnb</span><span id="E830"> and eBay— are platform businesses. </span><span id="E832">migme</span><span id="E834"> is building a platform business focused on social engagement and interactions that can be monetized. We are building our platform specifically for the next half of the world coming online through low-cost smartphones, primarily in South East Asia. The </span><span id="E836">Shopdeca</span><span id="E838"> acquisition helps us bolster the social ecommerce element of our platform.” </span></p>
<p id="E839"><span id="E840">In addition, </span><span id="E842">migme</span><span id="E844"> set a strategic partnership with </span><span id="E846">Meitu</span><span id="E848"> a leading photo and </span></p>
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<p>video editing mobile app with more than 900 million users. <span id="E850">Migme</span><span id="E852"> par</span><span id="E853">tners with India based </span><span id="E855">Paytm</span><span id="E857">, an online payment and e-commerce platform for its online payments. Another Key partner of </span><span id="E859">Migme</span><span id="E861"> is </span><span id="E863">Mimopay</span><span id="E865">, an internet service provider based out </span><span id="E866">of Indonesia. The partnership helps </span><span id="E869">migme</span><span id="E871"> users to buy credits for company services. Nepal based </span><span id="E873">eSewa</span><span id="E875"> is also in partnership with </span><span id="E877">migme</span><span id="E879"> to facilitate financial transactions via mobile and web based services. Recently the company has announced a strategic partnership with fantasy cricket sports platform </span><span id="E881">CricBattle</span><span id="E883"> Inc to integrate its services onto </span><span id="E885">migme’s</span><span id="E887"> platform.</span></p>
<p id="E888"><span id="E889">Metrics and Revenue</span></p>
<p id="E890"><span id="E892">M</span><span id="E893">igme’s</span><span id="E895"> </span><span id="E896">last </span><span id="E897">fi</span><span id="E898">scal year ended march 2016 and a</span><span id="E899">ccording to figures released by</span><span id="E900"> </span><span id="E902">migme</span><span id="E904">, it is showing an impres</span><span id="E905">sive growth. The </span><span id="E906">digital media company</span><span id="E907"> says it has raised its revenue by 525% to US$8.7 million in 2015 from the last year, which trimmed its net loss by 27 percent to US$14.9 million.</span></p>
<p id="E908"><span id="E909">The undervalued </span><span id="E911">migme</span><span id="E913"> has experienced 40% quarter-on-quarter user growth and its monthly active users (MAUs) grown to 32 million, which is a 220 percent jump from 2014. The current estimated valuation of </span><span id="E915">migme</span><span id="E917"> is US$46 million.</span></p>
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Migme -Asia’s Social Entertainment Platform
