Digital magazine store Magzter has raised an undisclosed amount in a Series A funding round from Indo-US Venture Partners, reports VCCircle. While the exact funding amount wasn’t disclosed, the report pegs the number in the range of $3-5 million. Further the company is also apparently looking for another funding round in the range of $10-15 million, over the next year.
Started in June 2011, New York and Chennai-based Magzter is a digital magazine store and news stand for mobile devices which allows users to browse, buy and read digital editions of select magazines and periodicals. Users can preview the magazines and then either buy a single issue of the magazine or opt for a 1,3,6 or 12-month subscription period. The company claims to save up to 90% costs when one buys single issues back issues or an annual subscription of available magazines.
600,000 iPad app users in India: Magzter claims to have 2.5 million registered users within 10 months of its launch, out of which around 600,000 iPad users access Magzter in India and claims to register 1000 transactions per day.
App platforms: Magzter currently offers apps for iPhone, iPad, and Android devices with apps for other platforms like BlackBerry, Windows Phone, Symbian, and Bada expected to be launched in the future. Magzter also has a web version and is available in other storefronts like Amazon App store and Huawei App store.
Magazines Offered: Magzter currently offers several Indian magazines including Open Magazine, Harper’s Bazaar, Cosmopolitan India, India Today, Outlook, Filmfare, CineBlitz, Femina and Galatta Express among others and International magazines like Good Housekeeping, Men’s Health, Top Gear, Health & Fitness, Lonely Planet, Grazia and Hong Kong Tatler among others. It claims to have over 400 magazines available on its platform and intends to introduce newspapers and increase its catalog to 10,000-20,000 magazines and publications from across the world in the next 18 months.
Competition: Magzter competes with Zinio which claims to have the world’s largest newsstand and offers more than 5,000 magazine titles in 33 different languages including Indian titles like India Today, FHM India, Vogue India and many others. Last October, Apple had also introduced Newsstand as part of iOS 5 launch, allowing users to buy digital versions of popular magazines and newspapers on their iPhones and iPads.