Video Sharing platforms are seeing phenomenal growth worldwide, both in numbers and fundings. Giants like TikTok and Kwai have risen worldwide to an extent that users are turning into celebrities.
Looking at this opportunity, a fashion based social media platform Roposo also made a pivot into a short video sharing portal last year. However, it has been struggling to make its mark in the Indian market and control its losses.
To improve its performance the company has raised a downround $10 million round led by Tiger Global. This comes as an extended Series C round for the Gurugram-based startup. A few weeks ago, the company had also seen Bertelsmann India investing $1.7 million.
The pre-money valuation of the company for this fresh round stood at Rs 174 crore, a downfall from Rs 478 crore valuation that it acclaimed two years ago.
Further, Mayank Bhangadia, CEO and founder of the company, has told ET that the company plans to raise another $100 million besides the current monetary inflow.
The current round is poised to help the company in acquiring talent, improving product technology, and enlarging user community from current 25 million.
The company boasts of 2.5 lakh posts by 7.5 million users on a monthly basis, with 160 million views and 2 lakh new users every day.
Financially the company saw a 3X growth in revenue to Rs 3.84 crore, the figure is still small keeping in mind the user base it claims. Not to forget, the losses of the company for FY18 stood at Rs 20.57 crore, almost 5 times the revenue.
Monetisation in content-based startups, especially UGC video content generation, has been a tricky task. After the latest investment, and the plans to raise an amount as huge as $100 million, this is a task that the company will have to figure out a way to succeed in.
With TikTok, Helo, Kwai being bullish in Bharat, Roposo faces fierce competition for sustaining its business in the market.