The investment is expected to be in the range of Rs 2,087-2,505 crore ($250-300 million) and will be made through a secondary share sale by existing financial investors, ET reported. The valuation of BMS is estimated to be around Rs 7,500 crore ($900 million). This potential investment by KKR highlights the positive transformation of BMS after facing challenges during the COVID-19 pandemic.
BMS, which is powered by BigTree Entertainment, is set to secure its largest fund-raising round. BMS’s largest shareholder is Reliance unit Network18, which holds 37%. Other existing investors include Accel, Elevation Capital, Stripes Group and TPG Growth.
In the last fundraising round in 2018, TPG Growth and other investors infused $100 million (Rs 670 crore) into BMS. The pre-money valuation at that time was $750 million (Rs 5,140 crore). Earlier, BMS had raised Rs 550 crore in July 2016 at a valuation of Rs 3,000 crore.
Both KKR and BMS declined to comment on the ongoing talks.
BMS has successfully bounced back from the impact of the pandemic. By selling tickets to various events and organizing events such as Lollapalooza, the company has managed to become profitable. In fiscal year 2023, BMS achieved its first profit of Rs 85 crore, compared to a loss of Rs 92 crore in the previous year.
During the pandemic, BMS faced a decline in revenue as multiplexes and offline entertainment shows were restricted. However, in the last two financial years, FY22 and FY23, the company saw a significant growth of 13 times. According to the consolidated financial statements received from the Registrar of Companies, revenue from operations grew 3.5 times to Rs 976 crore in FY2013 from Rs 277 crore in FY2012.
BookMyShow: The Big Picture
BMS’s impressive performance has attracted the interest of other private equity firms such as Carlyle, CVC Capital and Alpha Wave, who are also considering investing in the company. Avendus is advising BookMyShow in this process.
BMS expects to achieve top-line of Rs 1,400 crore in FY20 with 18-20% EBITDA margin. The majority of the company’s sales, approximately 65–70%, come from movie tickets.
Revenue from ticket booking accounted for 66% of the total operating revenue, which increased from Rs 227 crore in FY22 to Rs 648 crore in FY23. The remaining revenue is generated from advertising, marketing, streaming, food and beverage sales, and non-operating income.
The scope of entertainment spending in India is expanding beyond films to experiential events and live shows. With U2, Ed Sheeran and other artists touring the country, BMS is stepping into this growing field.
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According to one analyst, the company’s strong execution capabilities, extensive network and diverse roster contribute to an attractive investment proposition.