Other investors include Intel Capital, Bessemer Venture Partners and Indian billionaire Rakesh Jhunjhunwala.
The investment is part of its strategy to introduce localised internet services on its smartphones in India, said Xiaomi in a statement on Monday.
“We are investing in Hungama not only to start integrating content into our smartphones, but also to grow together with them and deepen our understanding of the content sector in India,” Hugo Barra, vice president of Xiaomi, said in a statement.
Xiaomi will soon start integrating Hungama’s content services into its platforms, which will also include themes and ringtones.
“With this investment, we intend to further strengthen our movie and TV services and, in fact, Hungama Play will shortly add 1,500 hours of TV content in Indian languages and English,” Neeraj Roy, Hungama founder and CEO,added.
Currently, over 75 percent of its smartphones sold in India are made in India.
The company released its flagship device Mi5 at Rs.24,999 to maintain its dominance in India.