Osmo raises $24 million from Mattel and Sesame Street as it expands its AR tablet games to the iPhone

Osmo has made its mark with award-winning augmented reality iPad games for children, and now it is teaming up with some big kids brands and announcing it has raised $24 million in a new round of funding. It’s a big validation for a new kind of game and toy company that grew up in Silicon Valley.

The funding for Palo Alto, Calif.-based comes from Mattel, Houghton Mifflin Harcourt, Collab+Sesame (maker of Sesame Street), Calibrate Partners, and existing investors Accel, Upfront Ventures, and K9 Ventures. Pramod Sharma, CEO of Osmo, said in an interview with GamesBeat that his company is in the process of making augmented reality games with Mattel and Sesame Street, the first time it is working with such major kids brands.