Kitamen to raise up to RM2mil to primarily build gaming centres

The Kitamen team gaming at one of its eSports Dojos. With this fundaising, expect more locations soon. - Kitamen

Malaysian eSports lifestyle brand Kitamen is looking to raise RM500,000 to RM2mil in equity crowdfunding (ECF) campaign to fuel its expansion across the country.

The campaign through ECF platform Ata Plus was primarily to fund new gaming centres, called Dojos, and drive up membership.

Kitamen Resources Sdn Bhd chief executive officer Hazman Hassan said the company was created to cater to the growing eSports community and ecosystem of game developers, publishers, tournament organisers, digital streaming platforms, fans, advertisers and investors. 

“The time has definitely come for the eSports industry in Malaysia. To further develop the market, community building is key. Therefore, it is crucial that we build dedicated spaces for gamers to gather, where they have access to complete eSports titles and state-of-the-art gear," he said. 

Since incorporating in June 2016, the company had set up 17 licensed Dojos nationwide, and built a community of 90,000 members. 

Hazman said Kitamen aimed to open 30 Dojos by year's end, with at least one in each state and also create co-working spaces and complete facilities to host tournaments and eSports events. 

He added the equity round aimed to raise between RM500,000 to RM2mil, of which 40% would go to building spaces, 20% for marketing, 20% for operations, 10% for the integrated database system and 10% for contingencies.

According to the term sheet, Kitamen is offering up to 8.77% of the company or RM2mil in equity, which put its total valuation at RM20.8mil. 

The 10,000 ordinary shares were offered at RM200 per share, while minimum investment was set at one share. 

Apart from equity, investors would also be given rewards including membership cards, tournament entry passes, hardware and a hotdesk in Kitamen's co-working space. 

Among Kitamen’s revenue streams are: space rental, event management, franchising, marketing, membership subscriptions, event consultancy, sponsorship and advertising. 

A check of Ata Plus's website showed it had raised RM43,700 so far, with the fundraising round to close in 74 days. 

Kitamen is also a strategic partner of Malaysia Digital Economy Corporation (MDEC) tasked with developing the Malaysian eSports ecosystem. 

On March 8, the two signed an MOU to uphold the gaming industry on multiple levels with an emphasis on "Healthy Gaming". 

Malaysia is currently ranked 21 in global game revenue estimates for 2017 with US$587mil (RM2.297mil), and had an estimated 2.4 million eSports enthusiasts in Malaysia.

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