Playbox TV
Initial Ask – Rs. 1 Cr. for 3.5% equity at a valuation of Rs. 28.57 Cr.
About the Company
Trying to solve the problem of multiple platforms and streaming applications, this company has launched their own mobile and TV application, where they provide services of about 40+ streaming services under single subscription and single sign-in. Their strategy includes collaborations with cable and internet operators. This was due to the numerous connections of these cable operators with the local families and households.
With about 87+ partnerships along with 26k+ users, they have made a customer acquisition engine. Their aim remains only to enter the space of unorganised cable and internet operators to not just integrate services, but to integrate subscriptions, with their subscription ranging from Rs. 99- Rs. 399.
Past performance of the Company
Their sales history is as follows: October 2021: Rs. 87 lacs, September 2021: rs. 62 lacs, August 2021: Rs. 59 lacs and July 2021: Rs. 53 lacs.
Industry Overview
There is a requirement of different types of content for different age groups, which makes a family spend countless on subscriptions of various OTT platforms and cables. This is the main concern on which the company is built. Talking about the industry it operates in, the cable operating business is a declining market. But the broadband services have grown by a good rate over the years, especially during the pandemic.
The competition in this area can be huge, as Reliance Jio has been trying to integrate all the services, similar to the business model of this company. But, in India, almost around 2.2 crores homes have a broadband service and 100 million homes still have cable TVs. Out of this, only 50% uses services of Jio and Airtel like brands. This company wants to cater to the other half. Firestick can also be confused with this business model, but they don’t have their own subscription based services.
Previous Equity Split/Investments
They raised their 1st round funds from Microscan company, where they got funds by diluting 40% equity of the company.
Offers made, and the one accepted:
Peyush Bansal was the only shark to offer Rs. 50 lacs at 20% equity of the company, along with Rs. 50 lacs as debt @ 12%. However, before they could counter, Peyush was out of the deal because of the concerns over the decision making party.