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Exclusive: Times Group’s digital arm to launch M&A fund

02 November, 2016

In an indication that it will take the inorganic route for fast-paced growth, Times Internet Ltd (TIL), the digital arm of the Times Group, has decided to launch a large fund to facilitate mergers and acquisitions. The new fund, however, is at least six months away, a top executive of the company told VCCircle.

TIL bought out or acqui-hired around 24 companies in the past two years. “Our appetite is quite large. We fund acquisitions off our balance sheet. Having said that we are creating structures around a fund just to do M&As,” said Gautam Sinha, CEO, TIL.

He, however, refused to share details such as the size of the fund or the exact time of its launch. “We haven’t fleshed out exact details… we are still six months away,” Sinha said, adding: “Our aim is to become the largest internet company by some distance…It (the fund) will be, therefore, large.”

Sinha claimed TIL is already the biggest internet company in India and its intent is to increase its dominance in the market.

TIL’s parent Bennett Coleman & Co Ltd (BCCL), also known as Times Group, publishes some of India’s largest selling titles such as The Times of India, The Economic Times and also, runs TV news channels such as Times Now and ET Now besides owning and running hordes of other print and TV platforms in mainstream Hindi and English as well as regional languages. TIL, which houses BCCL’s digital business, has close to 20 subsidiaries that include realty portal MagicBricks, coupon site CouponDuniya, cricket news site Cricbuzz and eat-out table booking platform DineOut. TIL posted a revenue of Rs 1186 crore in the financial year ended March 2015.

With 37 digital properties under its belt, mostly in digital content and some in digital product businesses, TIL claims to have a user base of 175 million. That covers almost half the internet population in India.

TIL, which made close to a dozen buyouts and acqui-hires in the past two years including those of CouponDunia, Dineout Services, Viral Shots, Willow TV, among others, has already signalled its intent to step up pace on the inorganic growth front and spend a few hundred million dollars on acquisitions in the medium term.

“If we look at the acquisitions we did in the past four years, everything has been done with the basic philosophy of monetizing the reach we have already achieved,” Sinha said.

TIL will do some three acquisitions, besides a number of acqui-hires every year, he said. “Historically, if we look at the acquisitions we have done in the past, they have grown since the time they got acquired and remained autonomous. They benefitted from the acquisition. We are pretty bullish on the assimilation,” Sinha said.

Besides its 20 subsidiaries, TIL has investments in around 50 firms, most of them through its accelerator TLabs, and a global partnership programme under which it picks stakes in international internet companies and helps them expand in the Indian market. Last year, it had picked small stakes and forged partnerships with Uber and Coursera.

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Exclusive: Times Group’s digital arm to launch M&A fund

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