Malaysian e-government services provider MY E.G. Services Berhad has announced that it will invest CNY15.0 million (around $2.4 million) for a 3.125 per cent interest in mobile augmented reality and virtual reality developer Ximmerse.
In an official statement, MYEG said that the investment agreement was signed on Monday by its venture investment arm MY E.G. Capital Sdn Bhd. The Malaysian service provider joins a number of other companies that have invested in the Chinese firm, including Lenovo Group, Guangfa Group and other financial investors.
Headquartered in Guangzhou, with offices in Shenzhen and Los Angeles, Ximmerse focuses on the research, development and commercialization of mobile visual computing, and since its establishment in March 2015, has been developing methods of computer vision to solve inputs for mobile AR/VR.
The investment in Ximmerse, which is part of MYEG’s overall expansion strategy to tap into fast-evolving technologies, marks the Malaysian company’s largest overseas investment to date.
“We are investing and will continue to invest in AR/VR because we believe these technologies will integrate into every part of our lifestyle. It is a structural disruption that will profoundly change our living experience,” MYEG Managing Director TS Wong said.
The deal comes only months after MYEG sealed an agreement to purchase 23.5 per cent interest in Malaysian tech company Stampede for RM10.4 million.
In its previous overseas deal in March 2017, MYEG signed a joint venture agreement with I-Pay Commerce Ventures Inc (IPCVI) to set up a JV corporation (JVC) for the purpose of engaging in the business of development and implementation of electronic government services projects in the Philippines.
Through MYEG Capital, MYEG has invested in numerous technology businesses, including FashionValet, Agmo Studios, Hurr.tv and Stampede Solutions.
MYEG’s backing of Ximmerse follows a rapidly rising trend in AR/VR investment. According to a report by industry analyst Digi-Capital LLC, the global investment in AR/VR during 2017 reached a record high of $3 billion. The total represents a 30 per cent rise in investments over 2016, during which the industry raised $2.3 billion, which was also a record.
In Asia, Tokyo-listed mobile gaming player GREE Inc, announced last month that it has closed its first virtual reality (VR), augmented reality (AR) and mixed reality (MR) fund with total commitments of $18.3 million.