TPG Growth is looking to pick up a minority stake of under 10% in BookMyShow, in a deal that is likely to value the online ticket booking firm at around $750 million
Mumbai: Bigtree Entertainment Pvt. Ltd, which owns online entertainment ticketing platform BookMyShow.com, is in advanced talks to raise around $50-60 million (approximately Rs320-380 crore) from private equity firm TPG Growth, said two people aware of the development.
TPG Growth is the middle market and growth equity platform of American alternative asset firm TPG.
If the deal goes through, it will be the fifth round of fund-raising for BookMyShow, founded by Ashish Hemrajani, Parikshit Dar and Rajesh Balpande. In 2007, Network18 invested in the company’s maiden round.
Accel Partners invested $18 million in the company in 2012. In 2014, the company raised $25 million in a round led by SAIF Partners that also saw participation from existing investors Accel and Network 18.
BookMyShow last raised Rs550 crore in July 2016 from Stripes Group, Accel Partners, SAIF Partners and Network18 at a valuation of more than Rs3,000 crore.
“BookMyShow has been in the market for some months to raise a new round of funding. The talks with TPG are at an advanced stage. TPG is looking to pick up a minority stake of under 10%," said one of the two people cited above, requesting anonymity as he is not authorized to speak to reporters.
According to the second person, the funding talks with TPG are likely to value BookMyShow at around $750 million. He too requested anonymity.
“The latest round of growth funding will help the company strengthen its leadership position, which has been under pressure due to entry of players such as Paytm in the movie ticketing space," the second person added.
TPG declined to comment on the development. An email sent to BookMyShow on Friday did not elicit any response.
While the core business for BookMyShow remains movie tickets, the company has, in recent years, been diversifying its business to add categories such as sporting events, music events and plays.
In the last couple of years it has acquired companies such as Chennai-based fan relationship management solutions provider Fantain Sports Pvt. Ltd and Bengaluru-based media analytics start-up Eventifier. In 2013, it had bought Chennai-based ticketing portal Ticket Green.
Last year, BookMyShow acquired Burrp, a local restaurant recommendation engine, from Network18.
With a presence in over 650 towns and cities in India, serving the entertainment demands of over 25 million customers, BookMyShow has grown to become one of the largest transacting e-commerce platforms in the country with over 10 million tickets booked every month on its platform.
The company has also started operations in countries such as Sri Lanka, Indonesia, New Zealand and the United Arab Emirates.
TPG Growth, an active investor in the Indian consumer space, owns a controlling stake in Bengaluru-based Rhea Healthcare Pvt. Ltd, which operates a network of mother and child care centres in India under the Motherhood brand, surgical equipment maker Sutures India Pvt. Ltd and India-focused cancer treatment chain Cancer Treatment Services International.
Last year, TPG Growth invested $50 million in Dodla Dairy, through The Rise Fund, its social impact fund. Other investments by TPG Growth in India include Lenskart, an online eyewear retailer.
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