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Eros Intl raises $30 mn via private placement to fund Eros Now expansion
MUMBAI: Film studio Eros International has raised approximately $30 million through a private placement that saw two existing top 10 institutional shareholders of the company increasing their holdings.
The proceeds from the funding will be primarily used to fund further expansion of Eros Now, the company’s over-the-top (OTT) platform.
Eros International group CEO & MD Jyoti Deshpande commented, “Our vision to transform Eros from a leading film studio to a leading digital company with a global footprint is well underway with Eros Now, our OTT platform crossing one million paid subscribers as of 30 June 2016. Our ownership of content and our strong balance sheet should provide tailwinds to grow the Eros Now subscriber base from one million to 10 million and eventually 100 million within the next decade.”
Eros Now has crossed over 1.1 million active subscribers who have paid for at least one month in the first quarter of FY17. The company is targeting 2 million paying subscribers by the end of FY17 and 5 million paying subscribers by FY18. The OTT service has over 49.6 million registered users worldwide across app, WAP and web.
Eros Now has a five-year target of at least 15–20 million subscribers worldwide with a blended annual ARPU of $5 from India and $30 internationally, with 80% of the target subscribers from India and the remaining 20% from across the world. It is in the process of acquiring 10,000 more films to add to its existing library of 5,000 films. It is also launching its original series in the second half of FY17.
Eros Plc plans to offer a minority stake in Eros Now to its India unit Eros International Media. Eros India will hold 10–15% stake in Eros Now, which will allow it to participate in the long-term value creation of the digital business. Eros Now will dilute its stake or plan an initial public offering (IPO) in future.