 "Bookmyshow")
BookMyShow (BMS) has announced it has pumped in its biggest capital influx so far by raising Rs 500 crore from US-based Stripes Group, Network 18, Accel Partners, and SAIF Partners. The company is now reportedly valued at Rs 3,000 crore.
BMS, which was launched in 1999 and then re-launched in 2007, successfully cornered the film ticket booking market in the past few years.
The new influx of capital means BMS will target international markets with Indonesia and Sri Lanka on their radar.
| BOOKING FOR PROFIT |
|
“We launched the Indonesia operations last month and Sri Lanka more recently,” said Ashish Hemrajani, co-founder of BookMyShow.
The company is also trying to make the website comprehensive and not just a one-stop shop for buying tickets.
“These funds will be utilised for rolling out exclusive entertainment experiences on BookMyShow, enhancing the overall offering for our users, while we hopefully build out a 360-degree gateway of entertainment in India,” added Hemrajani. He broke it down by explaining the company has launched video trailers, an IMDB-style film guide and a rating engine.
“We have made significant investments in developing an algorithm for the rating platform,” he said.
Hemrajani said the company has capital from the previous rounds pending. However, to fund these new projects, the company needs additional capital, which is why it got into the market, he added.
“We look forward to sharing our operating and investing experience with online transactional and ticketing businesses, as well as digital media, to help the company continue to scale,” said Dan Marriott, managing partner, Stripes Group.
Stripes Group is a growth equity firm that invests in internet, digital media, software and branded consumer products businesses.
Hemrajani said the latest round of funding will give them a runway of four years.
BMS, which enjoyed a virtual monopoly in entertainment ticketing, has come under pressure from Paytm, which recently signed contracts with PVR Cinemas. Paytm has not been able to make too much headway in the business but sources said there has been a steady uptick in the number of users buying tickets on the wallet. The Alibaba-funded company recently also decided to get into events and theme parks to corner the youth market.
Paytm has been doing away with the convenience fee by triggering cashbacks. BMS didn’t rule out phasing out the concept but said it would keep it on as long as it could.
"Personally, I feel the customer should pay for a service they used but if the market forces dictate that may change," Hemrajani said.
The company had diversified recently into organising and listing events and claimed that over 40 per cent of its revenue was from those channels. Hemrajani explained that events is still a nascent market in India due to weather but as indoor stadiums and arenas are developed, entertainment may find a new impetus through events. And as BMS is already in those segments, it may be able to enjoy the first mover advantage.
