Singapore’s trendy play brand “Mighty Jaxx” completed 170 million yuan in A+ round financing, and will develop Metaverse business in the future

Singapore fashion game brand “Mighty Jaxx” has recently completed a 170 million yuan A+ round of financing, led by East Ventures, a VC agency from Indonesia. The new investors in this round are Easternwind International and Pan Solar. In addition to overseas investment institutions such as Ventures, Teja Ventures, KB Investment and Korea Investment Partners, mobile game publishing company Chuangmengtiandi and another undisclosed domestic IP company participated in the strategic investment. Before the completion of this round of financing, Mighty Jaxx has received a $10 million Series A investment led by Tencent in August 2021.

It is worth mentioning that the main co-investor of this round of financing, Mirana Ventures, is also a venture capital partner of cryptocurrency trading platforms Bybit and BitDAO. With the support of Mirana Ventures, the company will also further strengthen its Web3-related technical reserves.

Following the completion of this round of financing, over the next two years, Mighty Jaxx will focus the funding on the growth of the Metaverse business, strengthening its ability to develop immersive and interactive digital collectibles and content.

Mighty Jaxx was founded by founder Jackson Aw in Singapore in 2012. It is a trendy collectible design studio with 42 well-known signed artist groups, and has collaborated with Sesame Street, One Piece, Garfield, SpongeBob SquarePants, HelloKitty, Shrek, Little Many well-known IPs such as Huang and My Little Pony have long-term cooperation, and their products have covered many markets such as North America, Europe, and Southeast Asia.

Singapore's trendy play brand “Mighty Jaxx” completed 170 million yuan in A+ round financing, and will develop Metaverse business in the future

Mighty Jaxx’s trendy play for IP My Little Pony

Previously, Mighty Jaxx’s largest overseas market was the US market, but as the growth rate of the US fashion play market slowed down, the brand has gradually shifted its focus to overseas markets. In recent years, the domestic trendy toy market has ushered in an explosive period. According to the “2021 China Trendy Toys Market Development Report” by the Chinese Academy of Social Sciences, the compound annual growth rate of my country’s trendy toys industry from 2015 to 2020 is as high as 36%, and the market size is expected to reach 2022. will reach 47.8 billion yuan.

The industry has continued to develop rapidly, and has gradually developed a considerable number of enthusiasts who specialize in collecting trendy games. According to data analyzed by Analysys, the core consumer group of collectible toys in China reached 30 million in 2019 and is expected to exceed 100 million in 2025.

At the same time, compared with neighboring markets such as Japan and Singapore, the market concentration of China’s trendy games is relatively low, and the market share of the top three companies in the industry is only 20%, which means that there are still many possibilities for new brands.

Mighty Jaxx saw the opportunity of the domestic trendy play market, and gradually shifted its focus to the Chinese market in recent years. In 2019, Mighty Jaxx began to expand offline channels in the Chinese market. On the one hand, they settled in domestic fashion play collection stores. By the end of 2021, the number of offline stores that can purchase Mighty Jaxx products has exceeded 500. In 2022, they will also strategically cooperate with Chuangmengtiandi to further bind with offline consumers and incubate new IP through strategic investment relationships. , it is expected that by the end of 2022, more than 1,200 offline brands will be exposed. On the other hand, Mighty Jaxx has also entered multiple e-commerce and content platforms such as Tmall, Douyin, Dewu, Xiaohongshu, etc. The current ratio of online and offline revenue is about 4:6. Through the strategic cooperation with Chuangmengtiandi, Mighty Jaxx will also strengthen the linkage and brand integration between online and offline.

With the successful listing of Bubble Mart, domestic capital’s attention to the trendy play brand is also heating up.

Jackson Aw told 36氪 that the introduction of two new domestic investors this time is also because the revenue of the Chinese market has accounted for more than 60% of the overall revenue in recent years. They hope that by introducing companies with rich IP resources as strategic investors, they will reach cooperation with well-known domestic IPs and launch some product lines for the Chinese market. In addition, they will further expand the team size in China. It is reported that by the end of 2022, Mighty Jaxx will have nearly 200 employees in China, including brand, supply chain, technology development and creative teams. In the Chinese market, Mighty Jaxx will focus more on “borderless” exploration, using metaverse, immersive and interactive digital collectibles and content as a driving force for future growth.

In addition, Jackson Aw also mentioned that Mighty Jaxx has accumulated certain technical capabilities for the new business of Metaverse. Since 2019, in order to help users confirm collectibles when trading products in the secondary market, Mighty Jaxx has applied blockchain technology to products, and launched a proprietary blockchain technology support platform for each product. The issuance of tamper-proof and permanent digital certificates laid the foundation for them to start the Metaverse business in the future.

In recent years, Mighty Jaxx’s revenue has doubled every year. Mighty Jaxx currently has four main business lines.

The first is the original trendy play product line, which is currently the business with the largest revenue share, including:

  1. The Originals series is mainly aimed at core collectors and designed in cooperation with artists. The unit price of this series is more than 1,000 yuan, and it is mainly based on exclusive IP.
  2. The Funboxx series, which is aimed at mass enthusiasts and cooperates with popular IP, its partners include well-known brands and IPs such as Hasbro, Universal Pictures, My Little Pony, etc. The unit price of this series is more than 70 yuan. In the Chinese market, Mighty Jaxx will Part of the focus is on the trendy play of domestic popular IPs.
  3. The average unit price is more than 10,000 yuan. The Premium Worked series for niche enthusiasts uses scarce materials and has a built-in chip. Users can scan the chip and interact with the digital image of Chaowan online.

The second business is Mighty Labs, which focuses on IP experiment incubation and emphasizes cross-border innovation. This product line includes not only the incubation of some own IPs, but also cross-border cooperation with well-known brands, such as the cooperation with Xiaopeng. A large-scale deconstructed art installation, a cross-border series of trendy shoes in cooperation with Anta, and a clothing series in cooperation with GXG. In 2021, Mighty Jaxx and China Li Ning reached a long-term strategic cooperation, and launched the “Mr. Li Ning” series of trendy games for the first time; in 2022, Mighty Jaxx will also work with Xi’an Museum to launch digital collections of Terracotta Warriors and Horses and physical trendy toys.

Singapore's trendy play brand “Mighty Jaxx” completed 170 million yuan in A+ round financing, and will develop Metaverse business in the future

Mighty Jaxx and Anta cooperate series of tide shoes

The third business is the development of trendy play derivatives combined with games, sports and other fields, including two series of Mighty Sports and Mighty Play. In the field of sports, Mighty Sports cooperated with F1 and the Bundesliga club Borussia Dortmund to launch a collection of peripherals. In the field of games, Mighty Jaxx is currently cooperating with brands such as Sesame Street and Gearbox. In addition to launching related collectible toys, it has also developed a series of games.

The last piece of business is the Metaverse business, which is a new business line launched by Mighty Jaxx and the focus of this financing. As one of the hottest outlets at the moment, the application of the metaverse has penetrated into various fields. But in the trendy game industry, there is still relatively little integration with the Metaverse. This will be the focus and brand moat of Mighty Jaxx’s future development.

Jackson Aw told 36Kr that last year they had made several attempts to develop well-known IP into virtual products. For example, they once cooperated with the digital collectibles application platform Veve at DesignerCon in 2021, and launched the NFT of the collectible “Inked Stories: Eve”, which sold 888 sets of products in a single sale, which were sold out in a few seconds.

According to the founders, by the end of this year, they will have about 100 IP (artists and brands) developed into virtual products. Thanks to the expansion of the Metaverse business line, this year’s revenue is expected to triple that of last year. , In the future, the Metaverse business will gradually become the company’s largest business.

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