Mighty Jaxx secures additional US$11m to fuel global expansion

Singapore-based design studio Mighty Jaxx has raised an additional US$11 million in an extension of its series A+ funding round, bringing its total funding to over US$51 million. The company plans to use the fresh funds to scale up its business in the US and Europe, where it has seen significant growth in consumer demand.

Transaction snapshot

  • Deal value: US$11 million
  • Deal multiples: N/A
  • Deal type: Series A+ extension
  • Investors: Sunova Capital and East Ventures

Mighty Jaxx, founded by Jackson Aw in 2012, creates limited-edition collectibles in partnership with well-known companies such as Nickelodeon, Warner Brothers, and Netflix. The company has customers in 90 countries and offices in the UK, China, and the US.

In March 2022, Mighty Jaxx bagged US$20 million in the first close of the series A+ round, which saw participation from investors such as Mirana Ventures, KB Investment, and Korea Investment Partners. East Ventures had led the first close, valuing the company at over US$200 million. However, Mighty Jaxx didn't reveal the valuation of the final close.

The design studio has seen a significant uptick in sales in the US, primarily driven by its top-selling One Piece merchandise, based on the popular anime series. Meanwhile, consumer demand in Europe is also on a steep upward trajectory. Mighty Jaxx's revenue for the first quarter of 2024 jumped by 5.5x compared to the same period last year, and the company expects to achieve EBITDA profitability by the fourth quarter of this year.

Mighty Jaxx tripled its revenue between 2019 and 2021, posting an average annual growth rate of 74%. A key market for the company is North America, where it is starting to ramp up slowly for its mass market products. The company's latest offering, the One Piece blind box, has surpassed more than 1 million units in sales.

After venturing into the non-fungible token (NFT) market with collections like Inked Stories: Medusa, Mighty Jaxx is now focusing on blockchain infrastructure. By registering its collectibles on the blockchain, the company believes it will gain a better understanding of the segment and build the products that their fans want. However, demand for NFTs plummeted in 2023 as sales hit its lowest point since 2019.

Mighty Jaxx has stepped up its partnerships with retail touchpoints, going from 2,500 in 2023 to more than 15,000 this year. Besides Western markets, the company intends to solidify its presence in Southeast Asia by expanding its retail footprint in Thailand and Indonesia. Mighty Jaxx also plans to launch its first flagship store in Bangkok by the end of the year.

However, spending power remains one of the big challenges in the Southeast Asian region that the company has to overcome, as Mighty Jaxx's collectibles are priced between US$15 to US$1,000, which can be a high price point for Southeast Asia in comparison to the US. As domestic economies start to improve and the ability to spend increases, Mighty Jaxx will also want to expand its presence and activities in the region.

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