Bangalore-based online DVD rental company Seventymm Services Pvt Ltd has raised $12 million (Rs 50 crore) in the third round of funding led by NEA Indo US Ventures. With this round, Seventymm has raised a total capital of about $22 million.
While NEA has invested approximately half of the $12 million, the rest has been raised from the existing backers Matrix India, DFJ and ePlanet Ventures. DFJ with ePlanet Ventures had invested $2 million in 2005, while Matrix Partners funded $7 million in 2006.
NEA Indo-US Ventures’ MD Ms Vani Kola will be joining the Seventymm board. Last year Seventymm had acquired Delhi-based online DVD rental firm Madhouse, which had received angel investment of $228,000.
There is a lot competition in the DVD rental segment in India with entry Reliance ADAG’s Big Flix and Nimbus Communication’s Showtime. ADAG was also reported to be in talks to buyout Seventymm after it made its entry into the DVD rental segment. Nimbus communications also made an entry into this segment in May this year with their entertainment rental and sale business called Showtime. Then there is also Moser Baer, who has released DVD and VCD movies at a price of Rs 34.
Unlike Big Flix, Seventymm does not plan to go into retailing side of the business. This round of funding will be used for expanding the reach of the business and home delivery services. Seventymm currently operates in six cities of Bangalore, Chennai, Hyderabad, Mumbai, Delhi and Chandigarh with a team of 400 people. It also claims to have a consumer base of 70,000 people and is adding 7,000 consumers a month, has an ARPU of Rs 250. Seventymm currently offers more than 18,000 titles covering Hindi, English, 11 regional languages and plans to take these upto 25,000 titles, adding both new releases and old ones.
This investment is NEA Indo US Ventures fifth investment announcement in the last three weeks. Only yesterday it had announced a $2 million investment in Chennai-based Basiz Fund Services. Late last month it had invested $2.25 million in Banglore-based Idenizen Smartware Pvt ltd, a technology solutions provider for the education vertical. Then it invested $4 million in India and US-based e-publishing firm Pre-Media Global USA Inc. It also co-invested along with DFJ in Delhi-based e-waste management company Attero Recycling Pvt. Ltd.