Stage OTT Raises Rs. 1.5 Crore From Shark Tank India

Stage OTT operates in the entertainment sector and focuses primarily on providing viewers with original regional content. The startup recently pitched themselves on Shark Tank India. Deep dive into the article and gain insights about the business model of the company and various other variables.

Stage OTT shark tank India

What is Stage OTT?

Stage OTT is a content platform with a strict focus on providing users with hyperlocal regional content. It is currently branding itself as the only platform in the world that provides viewers with regional content. The platform focuses on providing regional content across various regions in India. The content is predominantly original in nature and ranges across various categories such as folk, poetry, comic and motivation.

Currently the platform is focused on providing content across Haryanvi, Rajasthani, Bhojpuri and Konkani etc. Inorder to facilitate regional content the platform works closely with various local artisans. The content on the platform is bifurcated across two segments ie. Basic free content and VIP content which can be viewed with the help of a subscription.

The current statistics of the platform are as follows. It has 10 lakh downloads on Play Store. Currently the platform has 20+ movies, 50+ webseries and 100+ shows which are currently available on the platform.

Founders of Stage OTT

Stage OTT has been founded jointly by three co-founders Vinay Singhal, Shashank Vaishnav and Praveen Singhal. Vinay possesses a vast experience of operating the most viral webpage of India “WittyFeed.” After closing down the business he further rebranded it into Stage OTT.

What are the business operations of Stage OTT?

The platform began their operations by focusing on curation of Haryanvi Based content. This effort resulted into 1000+ Haryanvi artists getting direct employment through the platform. Apart from that they further diversified across the dialects and currently possess around 300+ hours of content across Rajasthani dialect.

Currently the platform operates with more than 1.3 lakh paid subscriptions. The subscription cost of the platform is around ₹400 annually.

Their web series on the platform consist of around 8 episodes. Each episode consists of about 25-30 minutes each. It costs around ₹20 lakhs to make a movie or web series.

If we look at the revenue for the previous year it’s around ₹3.85 crore with a monthly sale of around ₹25 lakhs. Apart from this they have a customer acquisition cost of around ₹270. However they have around 10% of customers who come organically on the platform. The platform currently operates with a monthly burn of around ₹1.1 crore.

Name of Startup Stage OTT
Founder Vinay Singhal,Praveen Singhal and Shashank Singhal
Incorporated 2019
Industry Entertainment Sector
Deal Asked for 1% equity at the stake of ₹ 3 Crores
Finalised deal
0.6% equity at the stake of ₹ 1.5 crores plus debt of ₹1.5 crore at 18% interest
Shark Aman Gupta, Peyush Bansal and Namita Thapar

What was the Shark Tank India pitch of Stage OTT

After presenting the pitch the trio asked for a funding of ₹ 3 crore at a stake of 1% of equity. This resulted in the entire valuation of the company averaging around ₹ 300 Crore.

Namita opted out of the deal due to it’s overly high valuation. While Anupam Mittal declined the deal by terming it as something wherein he can’t comprehend how his money could impact the overall business.

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Aman, Peyush and Namita jointly gave an offer of around ₹ 1.5 Crore at a stake of 0.6% of the equity. They paired this with a debt funding of ₹ 1.5 Crore with a 18% rate of interest. This funding took the valuation of the company to around ₹ 250 crores. The trio agreed to this offer and came on board.

Author: Govind Rawat

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