July 06,2016 – RedNewswire
Bengaluru, India: Movies and events ticketing platform BookMyShow has raised Rs 550 crore in a funding round led by US-based Stripes Group. It’s one of the biggest funding rounds for internet startups this year. Existing investors Accel Partners, SAIF Partners and Network 18 also participated in the round. BookMyShow said the deal valued the company at Rs 3,000 crore.
BookMyShow is a near monopoly in its space, though some well-funded companies, including Paytm, have recently entered the movie ticketing business and are trying to gain share by using discount cashbacks. In the events booking space, it competes with ventures like Explara, Kyazoonga and MeraEvents.
The company plans to allocate the fresh capital to strengthen existing verticals and improve the user experience on its platform using data analytics and generating its own content.
“We have been working on our own content for the last one year. We have got videos, information about movies and events. These have shown positive traction,” Ashish Hemrajani, CEO & co-founder of BookMyShow.
The company’s biggest revenue stream is movie ticketing, which generates about 50-55% of the sales. Ticketing for sporting and other events contributes 35%, and advertising the rest.
“Advertising is currently 10% of our revenue but we are looking to get more out of it as the medium is a natural choice for advertising,” Hemrajani added.
Stripes Group is a venture capital firm based in New York, focusing on areas such as internet, software-as- a-service, digital media and e-commerce with $1.5 billion of assets under management. Managing partner Dan Marriott said Stripes Group is looking to share its operating and investing experience with online transactional and ticketing businesses, as well as digital media, to help BookMyShow scale further. “Already the clear leader in movie and live event ticketing, BookMyShow is uniquely positioned to tap into India’s digital advertising and entertainment markets, which are among the fastest growing globally,” he said.