Venture capital firms Gobi Partners and Oak Investment Partners have invested $30 million in Digital Media Group, a Chinese operator of digital advertising platforms – television screens in public spaces – in a third funding round.
Headquartered in Shanghai, Digital Media Group provides digital media and advertising solutions for subway systems in China. Its network consists of bus shelters in Shanghai as well as 30 subway lines in cities including Beijing, Chengdu, Guangzhou, Hong Kong, Nanjing, Shanghai, Shenzhen and Tianjin.
Following the capital injection Digital Media Group has secured a contract with digital broadcaster Shanghai Metro TV, which grants the company exclusive rights to operate digital advertising for all 13 lines in the Shanghai Metro system over the next five years.
“The contract with Shanghai Metro Television is expected to bring revenue of $250 million to the company in a period of five years,” Thomas Tsao, chief executive officer of Digital Media Group, said in an interview.
In late 2006, Oak Investment Partners led the company’s $32.5 million second funding round alongside venture firms Gobi Partners, Sierra Ventures and NIF SMBC Ventures.
Gobi Partners, Japanese mobile operator NTT DoCoMo and Japanese advertising agency Dentsu invested $8 million in Digital Media Group’s first funding round in 2005.
Based in Shanghai, Gobi Partners focuses on early stage investments in China’s IT and digital media sectors.
Oak Investment Partners is a multi-stage venture capital firm based in the US. It primarily focuses on sectors such as internet and wireless communications; IT and software outsourced services; financial services technology; healthcare information and services; clean energy; and retail.