OnMobile paid Rs 31.8 crore for 10% stake in Chingari


OnMobile has invested Rs 31.8 crore for a 10% stake in India’s home-grown short-form video app Chingari. In April, OnMobile had announced the stake acquisition, however, the quantum of investment was not disclosed.As a result of the investment, OnMobile, OnMobile’s net cash declined to Rs 227.2 crore in Q1 FY22 from Rs 266.2 crore. The company has provided this update in its Q1 investor presentation.

In April, OnMobile had led a $13 million (Rs 95 crore) funding round in Chingari. Other investors who participated in this round included Republic Labs US, Astarc Ventures,  White Star Capital, India TV (Rajat Sharma), JPIN Venture Catalysts Ltd, ProfitBoard Ventures, Raghunandan G of Zolve (Co-Founder, Taxi4sure), and some large family office funds from the UK.

Earlier last year Chingari had raised $1.4 million from a series of Angels, including Jasminder Gulati, FJ Labs (Fabrice Grinda), Angelist, Utsav Somani’s iSeed, Village Global, and Blume Founders Fund.

As part of the deal, OnMobile will integrate and distribute its direct-to-consumer ONMO gaming platform on the Chingari app and collaborate on other product integrations to serve millions of users. Chingari will use the funds to enhance its content portfolio, hire top talent and accelerate its growing user base.

Through this partnership, OnMobile will promote its games in millions of videos on Chingari app. OnMobile will also set up games channel on Chingari app and have access to millions of Chingari users.

Tech4Billion Media Private Limited owns ‘Chingari’ application which is an Indian video-sharing social networking service wherein people record and share short video clips which is available in 148 countries in Android app and 133 countries in iOS.

Through Chingari app, users can upload videos in 14 languages including English, Hindi, Bangla, Gujarati, Marathi, Kannada, Odia, Punjabi, Malayalam, Tamil, and Telugu. Chingari app was first launched in Google Play Store in November 2018 and later rebranded and redesigned in June 2020.

Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India).

Click here to read original post