On Wednesday, Well-link, a Chinese cloud gaming service provider, announced that it had completed the B round of financing with a total amount of 400 million yuan ($62.78 million). This round of financing was led by Future Capital, followed by CDH VGC and the previous shareholders of Xiaomi, MiHoYo and Shunwei Capital.
According to Well-link, this round of financing will be mainly used in the design and mass production of exclusive servers for the development virtual world products and the design and construction of digital human platforms using cloud-based rendering. The money will also be used for the R&D of “Ark Architecture”. Among them, the company plans to invest more money in the servers.
As a leading provider of solutions for video cloud computing in China, Well-link has an innovative cloud computing architecture developed by the company itself and many other key technologies such as real-time audio and video coding and decoding. On this basis, the company has built a set of high-quality standardized cloud gaming platform as a service (PaaS) models to provide one-stop solutions for many enterprises such as game operators and developers as well as communication operators.
Well-link has also established a long-term agreement with the leading game company MiHoYo. In August, 2021, the company cooperated with MiHoYo to launch the Android beta version of “Cloud Genshin”. This made “Genshin”, which was released over a year ago, once again attract the attention of a large number of gamers.
In addition, during this year’s ChinaJoy, a digital entertainment expo held annually in Shanghai, Well-link and China Mobile’s Migu, Xiaomi and Kingsoft Cloud jointly released a cloud gaming plan. At the same time, Well-link has also established formal working relations with 360 Game, CMGE Technology and other game companies.
According to Qianzhan Industry Research Institute, in 2021, the market scale of China’s cloud gaming industry is expected to reach 19.3 billion yuan, and the compound growth rate will exceed 100% in the next three years. In 2023, the market scale is expected to reach 100 billion yuan, which has broad commercial prospects for cloud gaming companies.