California-Based Nex Raises $150M in Funding Round

The funding includes a Series E led by Baillie Gifford and BAI Capital, with participation from NBA Investments, Logitech, Medici Capital Partners and the Raine Group. The company also secured a new credit facility from JPMorgan.

Nex plans to use the funding to expand internationally, increase its retail distribution, grow its content ecosystem and introduce Connected Play features for multiplayer gaming across households.

What is Nex?

Nex develops active play systems that allow families to interact with games and entertainment through natural body movement.

Its main product, Nex Playground, is a controller-free active play system designed for children and families. The platform offers games and experiences across music, sports, fitness, parties and learning.

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Nex says its system is designed with safety and privacy in mind. Motion-tracking data and processing remain on the device, while each system includes a built-in camera cover.

The platform currently offers more than 60 games and includes franchises and characters such as Bluey, Barbie, Kung Fu Panda and Peppa Pig.

How Much Funding Has Nex Raised?

Nex has raised more than $150 million in new equity and debt financing.

The latest financing includes a Series E round led by Baillie Gifford and BAI Capital, along with a new credit facility from JPMorgan.

NBA Investments, Logitech, Medici Capital Partners and the Raine Group also participated in the Series E.

The source does not provide details of Nex's previous funding rounds.

Who Invested in Nex’s Series E Round?

Baillie Gifford and BAI Capital led Nex's Series E funding round.

NBA Investments, Logitech, Medici Capital Partners and the Raine Group also participated.

Nex additionally secured a new credit facility from JPMorgan.

Why the Funding Matters

Nex plans to use the new capital to expand into international markets and increase its retail distribution.

The company also plans to expand its content ecosystem through partnerships with gaming and entertainment companies.

Another focus is Connected Play, a new feature that will allow families in different households to play together.

Nex is also expanding its game lineup. Upcoming titles include NFL Flag, Dude Perfect Trickshot Challenge and PAC-MAN with Bandai Namco Entertainment.

Who founded Nex?

Nex was founded in 2017 by David Lee, Tony Sung and Reggie Chan.

The company is headquartered in San Francisco, California.

Nex also announced the appointment of Jeff Shouger as Chief Financial Officer. Shouger and gaming and technology industry veteran Bing Gordon have joined the company's Board of Directors.

Leadership Comments

“Families have timeless needs: to move, grow, connect and have fun. The response to Nex Playground has shown us that active play can serve those needs at a meaningful scale,” said David Lee, co-founder, and CEO of Nex. “We are building Nex to be a 100-year company.

“The gaming industry is one of constant reinvention, and the few companies that thrive over the long term are those that never lose sight of their core purpose: to delight consumers. Through active play, Nex is showing that the family room can once again become a place of laughter, entertainment and togetherness,” said Alexander Nicolier, a private companies investor at Baillie Gifford.

Market and Business Growth

Nex Playground has sold more than 1 million units and is available in more than 7,000 U.S. retail locations, including Costco, Sam's Club, Target, Walmart and Best Buy.

The company's subscriber base has grown sevenfold over the past 18 months and is approaching 1 million subscribers. Nex expects to surpass that milestone by the end of the year.

The platform now has more than 60 games. Its content lineup includes music, sports, fitness, party and learning experiences.

Third-party developer partnerships are also expanding. Freefall Racers, originally developed for Xbox Kinect by Smoking Gun Interactive, was adapted for Nex Playground and reached more than 150,000 families in its first month.

Nex says the title became the fastest externally developed game on its platform to surpass an hour of average playtime.

The company has already expanded into Canada, the United Kingdom and the Republic of Ireland. Germany is planned for later this year, followed by Japan and South Korea in 2027.

What Happens Next?

Nex plans to continue expanding its retail presence and international operations, with Europe and Asia among its key markets.

The company will grow its game and entertainment content through additional partnerships and introduce Connected Play to allow families in different households to play together.

Nex also plans to continue expanding its platform and content lineup as it builds its presence across global markets.

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