China's E-commerce Giant Alibaba Backs JMGO, and Has Led $86,503,943 Series D Round In JMGO

Last Updated October 26,2018

Shenzhen, China - Oct. 15th, 2018, JMGO has finished the D round of financing and raised 0.6 billion RMB (~ $86,503,943 USD) from Alibaba Group and other investors including JunSan Capital,  Sunz Fund, 36Kr, Stone Capital, GF XinDe Investment, and DZ Capital.

Hu ZhenYu, JMGO’s chairman, says this financing round will be continually used in the development of laser projectors (laser TVs), and JMGO will conduct in-depth cooperation with Alibaba in technology and products like the AI (artificial intelligence), Tmall-Spirit-enabled projectors (Tmall Spirit is Alibaba’s customizable virtual assistant like Amazon’s Alexa), etc.

JMGO U1 4K Laser Projector

JMGO was established in 2011 and dedicated to the development and production of smart projectors. Currently, there are two big business lines, 1) portable smart projectors; 2) laser projectors (laser TVs). The former generates the majority of JMGO’s revenue while the latter is the focus of the future development. JMGO’s revenue was about RMB 0.6 billion (~ $86,503,943 USD) in 2017, and the shipment increased up to 92% month-to-month in the first half of 2018 so this year’s revenue is expected to exceed RMB 1.5 billion (~ $216,406,497 USD).  

laser projectors arose in 2016, and JMGO was one of the earliest players. Now, JMGO has its own laser light engine and lens after 3 years of continuous involvement in research and development, and recently launched the JMGO U1 4K laser projector which was priced much lower than the previous JMGO laser projector models and the similar products on the market.

The cost of the light engine accounts for over 90% of the total cost of a laser projector. Currently, the development and production of the laser light engine is mainly controlled by firms in Japan and Taiwan, and the selling price to projector companies in mainland China is pretty high, usually RMB 10,000 (~ $1,439 USD) per unit, but the cost of JMGO’s own laser light engine is under 5,000 (~ $719 USD), with decreasing further, and that's why JMGO U1 can sell at a very competitive price.

Hu ZhenYu says the price of laser projectors needs to be reduced continually, even to RMB 2,000 (~ $288 USD), to get laser projectors enter ordinary homes. The core approach to reduce the device’s price is to obtain more autonomy in technology, and JMGO, besides the self-developed light engine, has its own lens, and the next goal is to develop its own projector screen.

The market laser projectors are leveraging would probably be a 10 billion RMB one. If the technology and supply chain goes well, the laser projector will grab 20-30% of market share of the over 80’’ ultra-big screen TV’s, then the first brand in the laser projector industry is expected to have RMB 4.5-6 billions (~ $0.6-0.8 billions USD) of annual revenue.

Hu ZhenYu says the sales of JMGO laser projector is rising steadily and we believe that with laser projection technology improving and the up-stream cost declining the laser projector will be more competitive than traditional TV’s in both performance and price and will eventually replace the TV’s as the entertainment centre in living room.  

A summary of JMGO financing:

Nov. 2014 - 60 million RMB (~ $8,648,523 USD) A round of financing from Fortune Capital, IDG, Star VS.

May 2015 - 0.2 billion RMB (~ $28,828,413 USD) B round of financing from PineVC, Timesbole, and SkyChee.

March 2016 - 0.6 billion RMB (~ $86,502,696 USD) C round of financing from Golden Brick Capital and CQB Fund.

Oct. 2018 - 0.6 billion RMB (~ $86,502,696 USD) C round of financing from Alibaba, JunSan Capital, Sunz Fund, 36Kr, Stone Capital, etc.


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