Mumbai: Abundantia Entertainment Pvt. Ltd, an independent motion pictures studio, has raised an undisclosed sum from strategic investors RW Media Pvt. Ltd and Singapore-based Callista Capital in lieu of a significant minority stake for funding its expansion, a top official in Mumbai said on Wednesday.

Abundantia, founded in August 2013, has a slate of 11 films till early 2016 that have a combined budget of nearly 250 crore, said Vikram Malhotra, managing director and chief executive, Abundantia Entertainment.

The movies will begin releasing from mid-2014.

Malhotra, who most recently was the chief operating officer of Viacom18 Motion Pictures, declined to disclose the financial details of Abundantia’s first round of fund raising. But a person with knowledge of the transaction, declining to be identified, said the two investors together put in around 100 crore.

“When it comes to raising capital for a long term, there are inherent lacunae in a fund. Our purpose is to create a film business… the funding will fuel our growth plans and we can take sure-footed steps," said Malhotra.

Abundantia Entertainment, which will only co-produce movies across genres, has signed deals with prominent directors Neeraj Pandey (who directed A Wednesday and Special 26), Shoojit Sircar (Vicky Donor and Madras Café), Nikhil Advani (D-Day and Kal Ho Na Ho) and Soumik Sen. There are no exclusivity clauses involved in working with Abundantia Entertainment Pvt. Ltd.

RW Media, a Mumbai-based media and television production company, is promoted by Reena Wadhwa, the Indian partner of Italian luxury brand Gucci.

Wadhwa made her debut as an actress in Yeh Jo Hai Zindagi, a famous sitcom of the 1980s.

“We see the entertainment industry taking the centre stage," Wadhwa said. “We expect demand for entertainment to strengthen across formats," she added.

India’s media and entertainment industry grew a tepid 12% to 92,000 crore in 2013, compared with a 12.6% rise in the year before, as the economic slowdown suppressed advertising revenues, according to a 5 March report on the sector by the Federation of Indian Chambers of Commerce and Industry (Ficci) lobby group and consulting firm KPMG.

Jehil Thakkar, partner and head-media and entertainment at KPMG, said independent studios are known to manage risks well and are therefore a good investment opportunity for those looking to invest in the film industry.

“Studios essentially incorporate content, marketing, distribution and IP (intellectual property) monetization under one roof. If there is one model that can manage risks well in the film industry, it’s studios," said Thakkar.

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