E-Factor Adventure Tourism Pvt. Ltd, a subsidiary of the celebrity wedding planner and management company E-Factor Entertainment, has raised undisclosed amount of funding from Rajasthan Venture Capital Fund (RVCF) for a 13% stake in its second round of funding. The funds have been raised for its hot air ballooning business, Sky Waltz.
Pune-based RCS Advisors India Pvt. Ltd. acted as the advisors to the deal.
Sky Waltz claims to be the first ever brand in India to have received a hot air ballooning license. The two year old company is into the business of hot air balloon rides. It raised its first round of funding about a year back from an undisclosed investment banker for a 3% stake in the company. The company has, hence diluted a total of 16% stake since its inception.
The proceeds of the stake sale will be used for the brand promotion of Sky Waltz and towards the working capital. Part of the raised funds will also be used for the expansion of operations in other locations. Currently, Sky Walts has operations in three locations – Jaipur, Ranthambore and Gurgaon.
The company targets high end travellers and international tourists. It derives revenues from the sale of tickets for the rides. Each ride, which about an hour long, costs Rs 8,000 - Rs 10,000 per person. Each balloon has a capacity of carrying about 8-10 persons at a time. The company currently has six balloons across three locations. In terms of location, Jaipur happens to contribute to the bulk of the company’s revenues.
The company also makes money by conducting special events and promotions for corporate team building events and by holding events on special occasions and festivals. Sky waltz is also planning to explore the advertising revenue stream by using the balloons as hoardings for advertisements.
Owing to its dependency on tourism, the business is a seasonal one. In a year, the company has about 7-8 business months. Monsoons and the extreme summer seasons are the ‘no-business’ months for the company. The Sky waltz team currently comprises of 50 people across its all three locations It also plans to soon foray into allied business like theme rides, stay arrangements as well as package tours.