Mind Candy, the maker of “Moshi Monsters,” has avoided potential bankruptcy with $US1.5 million (£1.2 million) in new funding from existing investors and by renegotiating the terms of a loan agreement, according to Bloomberg.
Chief executive Ian Chambers said Accel Partners and LocalGlobe led the round, with other existing investors also taking part.
Mind Candy also managed to negotiate a two-year extension on a £6.5 million loan from TriplePoint Capital.
Earlier this year, Mind Candy warned it could go bankrupt if it couldn’t renegotiate the loan financing.
In a March interview with Business Insider, Mind Candy founder Michael Acton Smith, who remains creatively involved with the business, said: “It’s going, but it’s not a huge cash generator. Mind Candy’s not as big as it was, but it’s in good shape.”
At Mind Candy’s peak, revenue was almost £47 million in 2012. “Moshi Monsters” was once hugely popular, and let young players take care of virtual pets online. But then followed a tough couple of years as Mind Candy failed to replicate Moshi Monsters’ success on mobile.
Mind Candy’s most recent financial filings show revenue almost halved to £7.2 million in 2015.
The company is relying on a relaunch of “Moshi Monsters,” targeted at a younger audience, and a new product called “Petlandia,” Acton Smith said.
“Petlandia” lets people order personalised storybooks starring their pets. Chambers told Bloomberg that Mind Candy had sold 30,000 books so far.
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