New Delhi: Ticket booking service Bookmyshow said that revenue growth has accelerated this year, as the company entered 75 new cities and reported an increase in demand for both movie and sporting event tickets.
Promoted by Bigtree Entertainment Pvt. Ltd, Bookmyshow expects to generate up to $4 million in high-margin advertising sales this year and add more video-related content on its website and app.
Bookmyshow, which is now present in 300 cities in the country, reported revenue of roughly Rs.128 crore for the year ended March, an increase of 52% over the previous year.
“We have seen an acceleration in sales growth this year,” said chief executive officer Ashish Hemrajani. “Demand for movies has been strong and we have also seen an increase in growth for non-movie tickets because of (ISL) Indian Soccer League, (IPL) Indian Premier League and tennis.”
Bookmyshow, which is backed by venture capital firms Accel Partners and SAIF Partners, as well as Network 18, last raised Rs.150 crore in June 2014.
Bookmyshow is one of the more capital-efficient companies in Indian e-commerce, reporting a loss of just Rs.13.5 crore last year.
It is a clear market leader and has few rivals, giving the Mumbai-based company an enviable position in Indian e-commerce, which is otherwise fiercely competitive.
Bookmyshow, which generates roughly 60% of its business from movie tickets, is looking to diversify its business.
It is expanding its small but lucrative ads business by adding content around movies and actors as well as increasing video content on its platforms. It has introduced some new features such as a review and rating machine to improve customer engagement.
Bookmyshow will publish so-called native ads as well as video ads. The company currently offers movie trailers and will add more video content such as behind-the-scenes footage of movies.
“It’s very important to get the balance right. The first priority is always to give users what they want and engage them. So, the focus is on well-thought-out native content and other content that will keep users interested. We are just starting to understand how to do advertising right and this part of the business will play out in a big way next year,” Hemrajani said.
Bookmyshow is also considering adding payment options so that users can pay for purchases later. Since the company doesn’t offer cash on delivery (COD), which is till the preferred mode of payment for a majority of Indian online shoppers, its growth is relatively slower in smaller cities and towns. All of its transactions currently are paid for online.
“COD is unviable. In a business like ours, where customers need tickets fairly quickly, we would need to deploy a field force of tens of thousands if we have to offer COD. It is also very expensive otherwise. Cancellations/returns are high with COD; cash flow gets impacted. So, we are looking at other payment options that can be substitutes for COD,” Hemrajani said.