ChilliChilli was founded in Hamburg, Germany in 1996 and their earliest known releases from that year were Chilli Con Carnage and Hidden Mysteries: Titanic.
In the late 1990s, Chilli developed and published several casual and puzzle games for PC such as Hidden Mysteries: Titanic, Hidden Mysteries: Civil War, and Hidden Mysteries: Salem.
Koch Media's parent company Embracer Group announced the acquisition of Chilli in March 2018 as part of a larger deal acquiring several studios and publishers. Furthermore, Koch Media began promoting re-releases of older Chilli games like Project I.G.I. later in 2018, implying the transition had been finished.