KKR in Talks for a $300 Million Investment in BookMyShow backed by Reliance Industries

Industry Watch | January 17, 2024 | News

KKR BookMyShow Reliance Industries

KKR is currently engaged in discussions to make an investment ranging from Rs 2,087 to Rs 2,505 crore or USD 250 to USD 300 million. The private equity firm is exploring the possibility of acquiring a substantial minority stake in BookMyShow (BMS), which is backed by Reliance Industries.

If the investment materializes at the mentioned amount, it would result in a valuation of BookMyShow (BMS) at USD 900 million. This funding round would stand as the most substantial capital-raising effort by BMS to date. As of the article's publication, the largest ownership stake in BMS is held by Reliance unit Network18, accounting for approximately 37 percent. Other notable stakeholders encompass venture capital firms like Accel, Elevation Capital, Stripes Group, and TPG Growth.

In addition, the founders of BookMyShow, namely Ashish Hemrajani, Prakshit Dar, and Rajesh Balpande, collectively possess a 23 percent ownership stake in the company. The company's previous funding round occurred in 2018, securing USD 100 million from TPG Growth and several existing investors. At that time, BookMyShow attained a valuation of USD 750 million.

In the fiscal year 2021, amid the pandemic, the company experienced a significant decline in revenue, plummeting to Rs 74 crore due to restrictions on multiplexes and other offline entertainment events. However, there was a remarkable 13-fold increase in revenue during the fiscal years 2022 and 2023. According to consolidated financial statements obtained from the Registrar of Companies, the company's revenue from operations surged by 3.5 times, reaching Rs 976 crore in FY23 from Rs 277 crore in FY22.

As per reports from the media, the company is anticipated to conclude the fiscal year 2024 with a top line of Rs 1,400 crore, accompanied by an EBITDA (earnings before interest, taxes, depreciation, and amortization) margin ranging between 18 to 20 percent. Movie ticket sales contribute approximately 65 to 70 percent of the total sales.

Ticket booking earnings constituted 66 percent of the overall operating revenue, experiencing a surge from Rs 227 crore in FY22 to Rs 648 crore in FY23. Various verticals, including advertising, marketing, streaming, the sale of food and beverages, and non-operating income, contributed to the total revenue, reaching Rs 1,026 crore in FY23.

The private equity firm is exploring the possibility of acquiring a substantial minority stake in BookMyShow (BMS), which is backed by Reliance Industries.

Subscribe to Newsletter

   

0

Twitter Feed

Facebook Connect

Recent Headlines

Resources

View All

Artists

  • Sana Beszgar

    Singer/ Performer / Emcee / Host / Entertainers Connect

View All

Agencies

View All