Softopia, a Chinese brand known for collectible plush toys, has accepted external funding for the first time, securing investment exclusively from China Literature. According to information obtained by 36Kr, the transaction grants China Literature a 10% equity stake in Softopia, making it the company’s only outside investor.
Softopia is owned by Hangzhou-based Imou, which specializes in plush toy manufacturing and brand management. This deal marks the first publicly disclosed funding round in China’s vertically integrated plush toy sector that involves a mainstream institutional investor.
Public records indicate that Softopia began as a supply chain company focused on plush toys and operated its own manufacturing facilities. It has long provided end-to-end plush product solutions for international sports events, global IP holders, and leading domestic brands.
The company has developed a distinctive approach by blending the plush toy format with diverse materials. Its offerings include plush blind boxes, premium plush figures, and vinyl plush dolls—a category currently gaining traction. Softopia combines in-house design capabilities with expertise in advanced plush manufacturing techniques. It has developed original IPs such as Cino, Adou, and Alber, several of which ranked among the bestselling collectible toy IPs in 2024.
A source familiar with China Literature’s plans said the two companies will deepen collaboration around original IP for collectibles. The partnership will go beyond adapting China Literature’s existing IP and include the joint development of entirely new properties. “A new product line is expected to launch later this year,” the source said.
The investment aligns with China Literature’s broader push to expand its merchandise business. In recent years, the company has pursued IP commercialization through a mix of in-house initiatives and targeted investments. The Softopia deal enhances its presence in the IP merchandise market and marks the start of a deeper strategic relationship.
China Literature has also introduced its own merchandise label, Yuewen Wonderland, which offers soft collectibles, trading cards, figurines, and other items. The label currently operates stores in Xi’an, Hangzhou, Beijing, Nanchang, Shanghai, Hefei, and Chongqing. New locations are under development in Guangzhou, Shenzhen, Wuhan, Chengdu, and Nanjing.
In 2024, China Literature’s merchandise segment recorded a gross merchandise value (GMV) of more than RMB 500 million (USD 70 million), a new high. Major IPs such as The King’s Avatar, Joy of Life, Lord of the Mysteries, Under One Person, and Fox Spirit Matchmaker all contributed significantly to revenue.
To scale production and expand its product catalog, China Literature has increased its investments in collectible toy firms. Its collaboration with Softopia has already resulted in a plush collection centered on an “Island Party” theme. Additional co-branded items tied to IPs like Lord of the Mysteries, The King’s Avatar, and Under One Person are currently in development.
According to a research report on pop toy industries cited by 36Kr, mainland China’s collectible toy retail market is expected to reach RMB 110.1 billion (USD 15.4 billion) by 2026, with a compound annual growth rate (CAGR) of about 24%.
Situated upstream in the IP value chain, China Literature is leveraging its merchandise business to tap into high-growth segments such as plush collectibles and trading cards. Earlier this year, the company formally declared IP commercialization a central focus for its overall strategy.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Wang Yuchan for 36Kr.