PT MNC Vision Networks Tbk, a unit of media conglomerate MNC Group, has invested $40 million for a minority stake in the Indonesian arm of video-on-demand service Migo to accelerate its rollout in the archipelago.
Migo Indonesia is the local operating company of Temasek-backed Migo, a disruptive last–mile content delivery platform founded by E Ink inventor Barrett Comiskey.
Migo Indonesia plans to expand its network to up to 10,000 locations across Java island by the end of 2022. The move will make the service available for 100 million Indonesians, according to a statement. The company is targeting to reach 20 million paid monthly users by 2025.
MNC Vision Networks (MVN) had announced its cooperation with Migo Indonesia in June this year, a collaboration that allows Migo to distribute MVN’s entertainment content. In return, MVN takes a direct stake in Migo Indonesia.
“I believe this investment will benefit both parties,” MNC Group’s executive chairman Hary Tanoesoedibjo said in a separate statement on Monday.
As part of the agreement, MVN executives Ade Tjendra and Clarissa Tanoesoedibjo have joined Migo Indonesia’s board as commissioners members.
Internet penetration in Indonesia is estimated at around 70% in 2021, according to Statista, but the connection remains unreliable in some areas in the archipelago.
Migo Indonesia offers offline video-on-demand via its network partner of corner stores across Java island. At the stores known as “Warung Migo,” users can access Migo’s network to download video content at a high speed.
“We look forward to reaching the tens of millions of people who do not have access to OTT services or are unable to gain access to continuous data pipelines,” MVN president director Ade Tjendra said.
Migo announced its undisclosed Series B2 funding round in September last year from participants including Lippo Karawaci commissioner Ray Zage, YouTube co-founder Steve Chen, and Agaeti Ventures founder Pandu Sjahrir.