Eros International has raised $30 million through two existing institutional shareholders via private placement, reports BusinessWire. Wells Fargo confirmed itself to be one of the two shareholders to participate in the investment. The company will use the fresh funds to further expand Eros Now.
Eros has been pushing its streaming for a while now. The company earlier launched the platform in Malaysia in partnership with Maxi Berhad and U Mobile, and had launched the video streaming platform on Amazon Fire TV across the US, UK and Western Europe as well as on Apple TV. In India, Eros Now has tied up with Reliance Jio, Ortel Communications, Airtel, Idea and WeChat among others for content distribution. It had also inked a content acquisition deal with Pakistan’s Hum TV.
1 million paying users: Earlier this month Eros reported that it had 1.1 million unique paying active users at the end of the June quarter (Q1FY17) and over 49.6 million users registered users across app, WAP and web. The company had said that it would look to get 2 million paid users by the end of FY17 and 5 million users at the end of FY18.
Eros’ digital revenues: For Q1FY17, the company had registered digital revenues of $14.1 million, growing 135%, from $6 in the same quarter last year. On a sequential basis, digital revenues at Eros decreased 32.21% from $20.8 million. Eros’s digital businesses also includes YouTube channels and its distribution via cable based VoD services called “Bollywood Hits On Demand” with Cox, Rogers, Cablevision and Time Warner, apart from services in the UK and Middle East.
Audit committee internal review: In March, Eros International said that its audit committee completed the internal review with regards to its UAE subsidiary revenue, amortization of intangible assets, ErosNow user count, film library and related party transactions, after the company’s stock was downgraded by Wall Street Bank Wells Fargo citing Eros’ continued increase in revenues from the UAE is unexplained. The Audit Committee said it remained satisfied with the company’s financial reporting and disclosures in its financial statements as filed.