PK Online, a digital media start-up, is in talks with two early-stage venture capital funds, Nirvana Venture Advisors and Bertelsmann India Investments, to raise Rs.100 crore in its first round of funding to consolidate its technology platform and brand building.
Investors may pick up between 25% and 30% in the start-up that produces mobile and online content, including live videos, movies and music, according to people closely associated with the negotiations. This will value the sixyear- old company at about .`400 crore. The deal is likely to be sealed by June.
The firm’s competitors include Hyderabadbased mobile video streaming company Apalya Technologies. In April last year, Apalya raised $10 million (.`60.9 crore) from Cisco Systems.“There is now a broad consensus among risk capital investors that India has now crossed the inflection point when it comes to consumption of digital content,” said Rutvik Doshi, principal at Inventus Capital Partners.
Viraj Malik, chief executive and managing director of PK Online declined to name the investors the company is currently in negotiations with but confirmed it was in the market for a fresh injection of capital to fund its growth plans over the next two to three years.
E-mails sent to Nirvana Venture Advisors and Pankaj Makkar, managing director of Bertelsmann India, the corporate venture capital arm of the German group for India,
did not elicit any response.
Founded in 2007 by Malik, a former employee of Infosys and Enron, PK Online was earlier branded as Percept Knorigin. It was a part of Percept, one of India’s largest media and entertainment groups before being spun off. Percept had invested about .`2 crore in PK Online at the time of its inception and continues to own about a third of the company.