Experiential Etc
Initial Ask – Rs. 2 Cr. for 4% equity at a valuation of Rs. 50 Cr.
About the Company
It is a technology led advertisement agency which uses augmented reality to attract the consumers. They claim to be the first one to bring augmented reality based liveglass, holobyks, holovision, etc in India. Having tied up and worked with almost 150 brands, they have catered to the advertisement campaign needs of brands like Tata Motors, Xiomi, Mondelez, etc. HP, Amazon, Sun Edison are other brands they have done campaigns for. However, concentration risk is evident in their business as they received 50% of their revenue in the first 6 months of 2021 from just Xiomi.
They give personalised augmented reality services to all their clients. They don’t just want to become vendors or suppliers, they want to disrupt the advertisement world with their AR. Wanting to make their business scalable, they seek investments and mentorship of the sharks.
Past performance of the Company
Their sales figure from 2017 is as follows: 2018: Rs. 18 lacs with an EBITDA of 9.5%, 2019: Rs. 86 lacs with an EBITDA of 8.5%, 2020: Rs. 90 lacs with an EBITDA of 7.5%, 2021 (till November): Rs. 1 Cr.
Industry Overview
The Indian AR and VR industry is expected to grow at a CAGR of 38% by the year 2026. Growth in the Indian Augmented Reality and Virtual Reality Market is driven by the accelerating digital transformation of the country. This is a space which is being widely recognised in the gaming and entertainment industry.
This is the future of the advertisement space too, personalised and creative content is the demand of the hour. This is what brands like Snapchat are doing too, thus becoming a competition to this company. However, this company’s competency is its creativity and the fact that they were one of the first ones in this space, thus capturing a significant market share.
Offers made, and the one accepted:
They were offered Rs. 2 cr. by Peyush Bansal, but for one-third equity of the company. This was countered by asking for the same amount but at 8% or 10% and 2% advisory. However, the deal presented by Peyush was non-negotiable, and hence the deal was not done.