Short news platform NewsBytes has kicked off its Series A round led by US-based media, content and information-centric venture capital firm North Base Media.
According to regulatory filings, NewsBytes is set to raise Rs 3.9 crore with North Base Media Investments Fund investing Rs 3.75 crore for 10 equity shares and 1,154 Series A CCPS. Post allotment, the VC firm would hold a 6.23% stake in the company.
Indian Dream Capital(the investment arm of Powerhouse Ventures) would also join the round with Rs 15 lakh and to expand its stake to 0.25% post this investment.
The five-year-old firm had previously raised $1 million in its pre-Series A round led by German publishing firm Mueller Medien’s investment arm MM Inno GmbH. Founded by Sumedh Chaudhry, Romesh Khaddar and Shikha Chaudhry, NewsBytes provides concise and contextual news across various categories.
North Base Media, founded by former Wall Street Journal and Washington Post editor Marcus Brauchli and Sasa Vucinic, invests in media-tech and data analytics (content and advertising), e-commerce and content-monetization firms. NewsBytes will be the firm’s second investment in India, after it pumped money into the original text and video creator Pocket Aces in December 2016.
NewsBytes has also altered its article of association to foray into software consultancy business including the development and distribution of several kinds of software, the filings show.
Although details of secondary transactions aren’t out yet, NewsBytes has allotted 295 equity shares to debenture holders upon conversion of CCDs. Investors including Indian Dream Capital, Fin Services, Pravinbhai Shah & Family, and Puneet Dhaliwal are expected to benefit from this transaction. They had invested debt capital in NewsBytes during the last fiscal year.
Entrackr’s calculation shows that the company has been valued at Rs 56 crore ($7.5 million) post-investment. The three co-founders would hold a 53.63% stake in the company. NewsBytes indirectly competes with Inshorts and DailyHunt in this space.
Update: NewsBytes confirmed the development and announced that the total size of this round “is in the north of USD 1.5 million” with the participation of new investor JITO Angels.
Hat tip: paper.vc