Seventymm Raises $12 Million In Third Round From NEA Indo US Ventures
Bangalore-based online DVD rental company Seventymm Services Pvt Ltd has received $12.5 million (Rs 50 crore) from NEA Indo US Ventures. This will be the third round of funding for Seventymm, which now has a total capital of around $22 million. While DFJ with ePlanet Ventures had invested $2 million in 2005, the rest was raised from Matrix Partners in 2006. NEA Indo-US Ventures’ MD Ms Vani Kola will be joining the Seventymm board, according to this report. Last year Seventymm had acquired Delhi-based online DVD rental firm Madhouse, which had received angel investment of $228,000.
There is a lot competition in the DVD rental segment in India with entry Reliance ADAG’s Big Flix and Nimbus Communication’s Showtime. ADAG was also reported to be in talks to buyout Seventymm after it made its entry into the DVD rental segment. Nimbus communications also made an entry into this segment in May this year with their entertainment rental and sale business called Showtime. Then there is also Moser Baer, who has released DVD and VCD movies at a price of Rs 34.
Unlike Big Flix, Seventymm does not plan to go into retailing side of the business. This round of funding will be used for expanding the reach of the business and home delivery services. Seventymm currently operates in six cities of Bangalore, Chennai, Hyderabad, Mumbai, Delhi and Chandigarh with a team of 400 people. It also claims to have a consumer base of 70,000 people and is adding 7,000 consumers a month, has an ARPU of Rs 250. Seventymm currently offers more than 18,000 titles covering Hindi, English, 11 regional languages and plans to take these upto 25,000 titles, adding both new releases and old ones.
This investment is NEA Indo US Ventures fifth investment announcement in the last three weeks. Only yesterday it had announced a $2 million investment in Chennai-based Basiz Fund Services. Late last month it had invested $2.25 million in Banglore-based Idenizen Smartware Pvt ltd, a technology solutions provider for the education vertical. Then it invested $4 million in India and US-based e-publishing firm Pre-Media Global USA Inc. It also co-invested along with DFJ in Delhi-based e-waste management company Attero Recycling Pvt. Ltd.
08/21/08, 3:01 PM |
Can someone enlighten me on how their business could actually make money?
Considering the iNet penetration still at 3.5%, I don’t see a repeat of NetFlix here. The logistics just like everything else is overpriced in India. Knockoff DVDs are sold cheaply for those titles that are not already covered by Moserbaer.
So how are these guys able to raise so much money? Congratulations to them. I feel for the Limited Partners