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NV Capital, a credit fund for media and entertainment sector, intends to raise up to ₹500 crore for its maiden venture from domestic and global investors.
The fund will finance content creators , OTT platforms, gaming and entertainment start-ups. The fund founded by former corporate bankers Nitin Menon and Vivek Menon, the country’s first fund focused on media and entertainment sector, had recently received SEBI nod to function as a Category II Alternative Investment Fund.
NV Capital Co-Founder and Managing Partner Vivek Menon said: “Given the rapid ascendancy of OTT and other allied monetisation streams over the last few years, there is upfront cash flow visibility from a project which significantly minimises and mitigates the financing risk. Based on our past experience in actively funding companies in this space over the last decade, we have created a robust and secure selection criteria for choosing successful investments and will invest through a structured debt mechanism in about 10-20 projects annually”.
Multiple OTT platforms
With close to 1,500 movies being released every year, combined with the rapid rise of multiple OTT monetisation platforms, the value of content has been growing exponentially. This trend highlights the scope and enormous opportunity in entertainment financing, where Content creators are in dire need of capital to scale up.
The OTT platforms showed more than 180 web series and over 80 direct-to-OTT film launches in Hindi language alone since last year.
NV Capital Co-Founder and Managing Partner Nitin Menon said, “The last 10-15 years has witnessed meteoric growth in this alternative asset class with the support of ancillary revenue monetisation platforms like broadcasting, music amongst others, and now the recent OTT phenomenon. The investment in programming by media houses in OTT more than doubled from $260 million in 2017 to $700 million in 2020. Further, with the recent Amazon-MGM and the Warner-Discovery deal, the war for content manufacturing is getting bigger globally and India would be a recipient of these content spends as the next big market”.
Pen Studios Chairman and Managing Director Jayantilal Gada is the sponsor of NV Capital.
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