Tiger Global in­vests $10 mil­lion in on­line videos cre­ator The Vi­ral Fever

The Pak Banker - - BUSINESS -

Tiger Global Man­age­ment Llc has in­vested $10 mil­lion (Rs.65.6 crore) in pop­u­lar on­line video con­tent cre­ator 'The Vi­ral Fever' (TVF), pick­ing up a sig­nif­i­cant mi­nor­ity stake in the firm, ac­cord­ing to fil­ings made by the com­pany with the reg­is­trar of com­pa­nies (RoC).

The in­vest­ment was made in Con­ta­gious On­line Me­dia Net­work Pvt. Ltd, which was in­cor­po­rated in July last year. Ac­cord­ing to the doc­u­ments, Tiger Global has picked up close to 25% stake in the firm valu­ing it at around Rs.270 crore. The firm's fil­ings with the RoC show that for the pe­riod from 3 Au­gust to 21 Oc­to­ber, Con­ta­gious On­line Me­dia re­ported a rev­enue of Rs.64 lakh and a profit of Rs.22 lakh.

The Vi­ral Fever was set up by IIT grad­u­ate Arun­abh Ku­mar in 2010. He was later joined by Amit Golani and Biswa­p­ati Sarkar. TVF is pop­u­lar for pro­duc­ing on­line videos tar­get­ing the youth. The group is known for its com­edy videos such as Qtiyapa; Barely Speak­ing with Ar­nub-a satir­i­cal take on Times Now's Arnab Goswami and its orig­i­nal on­line se­ries such as TVF Pitch­ers and Per­ma­nent Room­mates.

In an email re­sponse, Tiger Global de­clined to com­ment on the de­vel­op­ment, while emails sent on Tues­day to TVF founders Arun­abh Ku­mar and Biswa­p­ati Sarkar did not elicit a re­sponse till the time of go­ing to press. In the re­cent years, the trend of cre­at­ing on­line video con­tent, es­pe­cially in the com­edy genre, has picked up sig­nif­i­cantly with the emer­gence of sev­eral groups such as All In­dia Bak­chod, East In­dia Com­edy and sev­eral stand-up comics.

Th­ese con­tent cre­ators are not just do­ing it for the laughs. There is se­ri­ous money to be earned through plat­forms such as YouTube. Ac­cord­ing to a re­port by US mag­a­zine Forbes in Oc­to­ber, the 10 top earn­ing con­tent cre­ators on YouTube for 2014 and 2015 earned a grand to­tal of $54 mil­lion.

For Tiger Global, this is the se­cond in­vest­ment in the on­line video con­tent space. In 2015, Tiger, along with ven­ture cap­i­tal fund Zodius Cap­i­tal, in­vested $18 mil­lion in Cul­ture Ma­chine, which runs the Be­ing In­dian and sev­eral other YouTube chan­nels. The firm helps artists cre­ate, pro­mote and mon­e­tize their videos on YouTube and other plat­forms.

The Amer­i­can in­vestor has stakes in close to 50 com­pa­nies of vary­ing sizes across the coun­try, mostly in the con­sumer In­ter­net sec­tor. It has in­vested an es­ti­mated $2 bil­lion-plus into th­ese com­pa­nies, earn­ing it the dis­tinc­tion of be­ing the largest and most ac­tive start-up in­vestor here over the last decade. How­ever, in the last cou­ple of the Amer­i­can in­vest­ment firm has gone slow on in­vest­ing in In­dia.

On 12 Fe­bru­ary, Mint re­ported that more than half the com­pa­nies in its port­fo­lio have been told that it will not par­tic­i­pate in fu­ture fund­ing rounds even on a pro-rata ba­sis. In in­stances where it does par­tic­i­pate in fu­ture rounds, it will not take the lead on deals as has been the norm in the past.

This has re­sulted in a sig­nif­i­cant churn in its port­fo­lio with sev­eral of its port­fo­lio firms be­com­ing ac­qui­si­tion tar­gets. In some cases they have been ac­quired by firms which are also funded by Tiger Global. In Jan­uary, Ben­galuru-based prop­erty search plat­form Com­monfloor was snapped up by on­line clas­si­fieds plat­form Quikr in a stock-swap deal. Tiger Global is an in­vestor in both com­pa­nies. Last week, an­other Tiger's in­vestee firm Zo Rooms got ac­quired by its larger ri­val OYO Rooms. Tiger Global counts uni­corns such as Flip­kart, Quikr and Ola as its port­fo­lio firms.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.