Digital firm PK Online looking to raise Rs.100 cr for expansion
Digital company PK Online (formerly known as Percept Knorigin) is looking to raise funds for expansion from venture capital growth funds.
Formed in 2007 through a partnership between Percept and entrepreneur Viraj Malik, the company creates products and services for digital content through a multi-screen platform, which is distributed through subscription and advertising.
Consumption of television content on devices such as personal computers, mobile phones and tablets is rising and there is a growing number of independent video-on-demand companies that have emerged. Viraj Malik, CEO and MD, PK Online Ventures, told Business Line, “We are looking to raise about Rs. 100 crore for expansion. We would like to raise about Rs. 30-50 crore in the first tranche.” The company could look at raising the first tranche in the next few months.
Malik said these funds were required for expanding product development keeping in mind the growth in the number of mobile devices and brand building.
The company, through its Hello TV platform, claims it reaches out to over 20 million internet users.
“In 2014, we will focus on developing our brand so that consumers can directly access our content. We will also be focusing on building more regional content,” he added. About 50 per cent of the companies revenues’ come from advertising, while the rest comes from subscriptions.
Besides the Hello TV platform, the company also runs ad-supported content on YouTube through channels such as Cine Curry.
According to a media and entertainment report by FICCI-KPMG, “Online video viewership has witnessed significant traction in India, with 60 million people having watched online videos on their PCs in December 2012-13, indicating the growth potential for online viewership of TV in India.” However, one of the key challenges for these firms is lack of significant amount of paid users, which is why they are expected to continue banking on advertising revenues.