Entropik raises Rs 60 Cr Series A round, valuation soars by 10X to Rs 300 Cr

Entropik, an artificial intelligence-based startup to track consumers’ emotional response, has raised Rs 60 crore in its Series A funding round led by Alpha Wave Incubation with participation from existing backers. This is the third external investment round for the Bengaluru-based company in its four years since its inception.

Alpha Wave Incubation has invested Rs 35.52 crore while existing backers Bharat Innovation Fund and Parampara Early Stage have poured in Rs 18.63 crore and Rs 3.75 crore respectively.

Entropik has allotted 6138 Series A CCPS at an issue price of Rs 97,599.35 per share to raise the amount, regulatory filings show. Fintrackr’s calculation estimates that the company has been valued at around Rs 300 crore - post-money - a 10X increase from Rs 30 crore in its seed funding round. 

Previously, Entropik had raised $1.1 million pre-Series A round from Bharat Innovation Fund and Parampara Capital in July 2018 and its seed funding of $150K came in November 2016. 

Floated in 2016 by Ranjan Kumar and Bharat Singh, Entropik uses facial coding, brainwave, and eye-tracking to interpret the consumers' subconscious and emotional behavior across various touchpoints for advertising, media testing, audience response, and for other research and insights across BFSI, media & entertainment, telecom, and other sectors.

Counting Myntra, Fortune, Vodafone, JP Morgan, and BankBazaar in its major clientele list, Entropik has collected 16 million unique human emotion data with 3.5 million minutes of experience testing and 0.2 million video testing done to date. According to the data available on the website, the platform has also made its international presence in SE Asia and North America recently in 2019. 

Post the latest allotment, promoters’ (Kumar and Singh) collective holding has been diluted from 40.63% to 32.5%. Kumar now holds a 29.92% stake whereas Singh has a 2.6% share in the company. Bharat Innovation Fund owns 20.63% followed by Alpha wave with 12.55%. Its ESOP pool constitutes 11.74% while SEA Global, Dileep Bhatt, Jitendra Gupta, and others own single-digit stakes amounting to 16.54% in total.