Music club cum resto-bar blueFrog plans pan-India, overseas expansion; eyes $10M in PE funding
blueFROG Media Pvt. Ltd., which runs two music clubs in Delhi and Mumbai that also double up as resto-bars, is looking to expand across India, largely through the franchisee route, as well as select markets overseas. The firm is looking to raise around $10 million (Rs 66 crore) through private equity funding after five months which would support its expansion plans, a top company executive told VCCircle.
blueFROG consists of a music performance club, a music consultancy service and a content creation and festival programming agency. The company was started by five people with experience spanning music, film making, advertising and finance; the firm is run by two of the five founding partners Simran Mulchandani and Mahesh Mathai.
“We already have two company owned outlets in Mumbai and Delhi. We will be opening two more by March 2014 in Bangalore and Pune through a franchise model for which we have already identified the investors,” said Mulchandani who is the managing director of blueFROG Media.
He said the firm plans to raise $10 million in E/VC funding after five months.
“We plan to use the PE capital that we will be raising to expand into other geographies like Singapore and Dubai as we already have interests from these markets. You always need enough capital before planning overseas expansion,” said Mulchandani.
The company will also be looking at smaller cities like Cochin, Goa, Chandigarh and Jaipur in a couple of years to expand.
From the next financial year, the company will be opening two to three outlets a year. Each outlet will cost Rs 5-7 crore to the company besides the investment to be made by the franchisee, said Mulchandani.
He said the Mumbai outlet at present generates a top-line of Rs 1.3-1.5 crore per month and each outlet takes around two-and-a-half to three years to break even. “The food and beverage component is a strong part in our business and we need a strong F&B presence to make a mark in the club and restaurant business,” he said.
(Edited by Joby Puthuparampil Johnson)