Kabaddi Adda
Initial Ask – Rs. 80 lacs for 1% equity at a valuation of Rs. 80 Cr.
About the Company
With the aim of bringing kabaddi to the screens of every Indian household every day of the year, this enterprise was established. They have 3 pillars through which they add value and earn revenue- content and distribution platform – which is their website and social media handles, having more than 1.5 cr views and more than 5 lac engaged subscribers. 2nd pillar is their Tournament in a Box – they spruce up existing local kabaddi tournaments, by bringing viewers and revenue for them. 3rd pillar is their own tournament, K7 – of which, they had 83 games in 1st season. K7 is a platform for youth to show their ability and skills in the sport. Its success can be clearly seen as 20 people already got offers in Pro Kabaddi League. So their revenue stream actually consists of money from the sale of media partner rights, which OTT platforms are paying upfront to them, sponsorships and fantasy leagues.
They have recently introduced Mahila Mondays – which is a women kabaddi match every Monday since January 2022.
Past performance of the Company
Their sales figure can be jotted down as follows: 2019- Rs. 24 lacs, 2020- Rs. 57 lacs, 2021 (till November)- Rs.1.2 Cr.with a projection of Rs. 2.5 Cr. till the end of the financial year. They have also projected their sales to be worth Rs. 10 – 15 cr. These numbers show that their gross profit margin is 80%, of which 40% is reinvested and 30-40% is enjoyed as net profit.
Industry Overview
Kabaddi is a 4000 years old game, an Indian game. It is currently the 2nd most watched sport in India. Having an audience of almost around 50 cr., it has come a long way from fighting cricket. India is not only a country for cricketers and the people watching cricket, but the focus is now shifting to Kabaddi.
With the growing popularity and viewership of the Pro Kabaddi League, the market is growing bigger by each day. This has made Kabaddi achieve the highest growth rate in the Indian sports market. Thus, there is a lot of room to be captured in this segment, and capitalise on the growth phase of the industry.
Previous Equity Split/Investments
They previously raised about Rs. 20 Cr. at a pre money valuation of Rs. 80 Cr. by Shecapital.
Offers made, and the one accepted:
- Namita Thapar first offered to invest in the business by giving them Rs. 80 lacs for an equity of 5%.
- Post this, Vineeta Singh joined Namita to offer the same amount but at an equity of 6%.
This was countered by the founders, as they first asked for Rs. 1.2 Cr. for 5% equity and then Rs. 1 Cr. for 6%. However, the deal was sealed at the original offer of the girls itself!