Bigtree Entertainment, the Network18 backed company which runs movie and event ticketing website, BookMyShow, has raised $18 million or Rs 100 crore from Accel Partners, acquiring a minority stake in the company, reports The Times Of India. The report mentions that the investment was made by Accel’s US and India funds, and that BookMyShow will use the funds to expand into tier-II and III cities and for increasing its non-movie ticketing business. The funding was first reported by Mint, quoting Accel’s investment at $12 million or Rs 66 crore citing sources close to the development, but it was unconfirmed.
Although Network18 did not disclose results for BookMyShow, separately, it did say in its last investor’s update, that the company was profitable. Network18′s digital commerce division had reported revenues of Rs 44.6 crore during the quarter ended 30th June 2012, up 79.8% from Rs 24.8 crore in the corresponding quarter last year. However, this is the combined revenue of HomeShop18 and BookMyShow, since the company did not provide a break up for HomeShop18 revenue unlike previous quarters. Network18 had said that BookyMyShow witnessed a ‘spectacular quarter’ partly driven by the increased IPL sales. According to the Times of India report, the site registered 2 million transactions, last month. There’s not much competition in the online movie ticketing space in India, and the other major player, Kyazoonga, is focused more on events ticketing.
2011 Revenues: Bigtree had reported revenues of Rs 16.09 crore for the year ended 31st March 2011 (FY11), up 32.36% from Rs 12.16 crore in FY10. The company had also reported a significant reduction in losses: compared with the Rs 1.52 crore loss in FY10, the company reported a loss of Rs 41.31 lakh for FY11.
Network18 had acquired a 60% post issue equity share capital in Bigtree in 2007, by subscribing to 8,548 partly paid up equity shares issued by Bigtree, and by the purchase of 2,581 fully paid up equity shares from the promoters for Rs 145 million. The agreement also provides for a further consideration of Rs. 50 million (USD 1.11 million) to be paid to Big Tree for the partly paid up shares if Bigtree’s current account bank balance falls below Rs. 10 million (USD 0.22 million). Of this Rs. 36.5 million (USD 0.81 million) has been paid until 31 March, 2011.