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OTT platform Ullu next in line to go public, files DRHP

EntrackrEntrackr · 1y ago
OTT platform Ullu next in line to go public, files DRHP
Medial

Homegrown over-the-top (OTT) platform Ullu Digital Limited has filed a draft red herring prospectus (DRHP) with the BSE SME for an initial public offering (IPO). The company has proposed to raise funds via fresh issue of up to 62,62,800 equity shares. Notably, the company’s DRHP doesn’t have any offer for sale (OFS) component. As per Moneycontrol report, Ullu plans to raise around Rs 135-150 crore in the IPO. This will value the company around Rs 500-570 crore or $60-70 million. Narnolia Financial Services Ltd and Skyline Financial Services Ltd are the book-running lead managers of the issue. The OTT platform plans to deploy the IPO proceeds for the production of new content, purchase of international shows, purchase of state-of-the-art equipment and hiring of staff, working capital requirement and other general corporate purposes. As per the DRHP, founder of the company Vibhu Agarwal commands 61.75% shares while Megha Aggarwal owns 33.25% of the company. Zenith Multi Trading DMCC has a 5% stake in Ullu. For the half year ending September 2023 (Apr-Sep 2023), Ullu generated Rs 58.33 crore revenue from operations with a profit of Rs 12.28 crore. Ullu is a membership-led platform which streams web series, movies, and other forms of content. The company earns the majority of its revenue from the sale of subscriptions. As of September 2023, the company has 20,92,975 subscribers. However, the user base of the company declined over 24% from 27,59,397 subscribers during March 2023. The company had around 17,70,439 and 11,46,646 subscribers at the ends of March 2022 and 2021, respectively. During FY23, Ullu’s revenue from operations grew two-fold to Rs 93.1 crore as compared to Rs 46.8 crore in FY22. Its profits jumped 3.87X to Rs 15.1 crore in FY23 as compared to Rs 3.9 crore in FY22. Ullu has joined the list of tech-companies that are planning their public listing soon. The list includes ixigo, Unicommerce, Ola Electric, Awfis, and FirstCry among others.

Related News

Child Rights Body Seeks Action Against Ullu App, Says ‘Extremely Obscene And Objectionable’ Content

Inc42Inc42 · 1y ago
Child Rights Body Seeks Action Against Ullu App, Says ‘Extremely Obscene And Objectionable’ Content
Medial

The National Commission for Protection of Child Rights (NCPCR) has asked the Ministry of Electronics and Information Technology (MeitY) to take action against Indian OTT platform Ullu for allegedly hosting obscene and objectionable content accessible to children. The commission has requested action against Google and Apple as well, and urged for stringent know your customer (KYC) norms for users of Ullu and similar apps. Ullu recently filed for an initial public offering (IPO) to raise INR 150 crore. Its operating revenue doubled to INR 93.1 crore in FY23 from INR 46.8 crore in the previous fiscal year, and profits increased from INR 3.9 crore to INR 15.1 crore in the same period.

IPO-Bound Ullu Digital Under The Scanner For Pornographic Content, Violation Of Rules

Inc42Inc42 · 1y ago
IPO-Bound Ullu Digital Under The Scanner For Pornographic Content, Violation Of Rules
Medial

Ullu Digital, an Indian streaming platform, is under investigation by multiple government bodies for allegedly selling "pornographic" content involving school children. The Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs, and Ministry of Electronics and Information Technology (MeitY) have launched a probe following complaints against the OTT platform. The National Commission for Protection of Child Rights had previously written to MeitY, expressing concerns about the app's accessible "extremely obscene and objectionable" content. Additionally, Uday Mahurkar, founder of Save Culture Save Bharat Foundation, has asked SEBI and BSE to investigate Ullu for various violations, claiming false information in its draft papers.

Ullu’s revenue stagnates at Rs 100 Cr in FY24; profit declines by 16%

EntrackrEntrackr · 7m ago
Ullu’s revenue stagnates at Rs 100 Cr in FY24; profit declines by 16%
Medial

Following a two-fold growth in FY23, over-the-top (OTT) platform Ullu recorded a modest 7% year-on-year revenue increase for the fiscal year ending March 2024. However, the Mumbai-based company saw its profit decline by over 16% during the same period. Ullu's revenue from operations grew to Rs 99.7 crore in the last fiscal year, from Rs 93 crore in FY23, according to its financial statement sourced from the Registrar of companies (RoC) shows. Ullu is a subscription-based platform offering a wide range of video streaming content filled with a lot of soft porn. Sale of content was the major source of revenue for the company as it accounted for 99.9% of the total operating revenue. This income increased by 7.7% to Rs 99.5 crore in FY24 from Rs 92.44 crore in FY23. Revenue from product sales dropped sharply by 82.9% to Rs 12 lakh in FY24. However, the company earned an additional Rs 50 lakh from interest income, bringing the total revenue to Rs 100.18 crore. On the expense side, cost of materials (content creation) remained the largest expense, climbing 28.7% to Rs 46.24 crore, representing 55.4% of the total costs. Advertising expenses fell by 25.7% to Rs 14.95 crore, while employee benefit expenses surged 41% to Rs 11.89 crore. Other significant expenses such as legal professional charges and rent stood at Rs 2.83 crore and Rs 2.38 crore, respectively. Overall, Ullu's total expenses grew by 15.5% to Rs 83.5 crore in FY24. In the end, Ullu's profit decreased by 16.2% to Rs 12.68 crore from Rs 15.13 crore in FY23. Its ROCE and EBITDA margin stood at 44.3% and 17.54%, respectively, during the last fiscal year. Ullu's EBITDA declined by 20.8% to Rs 17.57 crore in FY24 from Rs 22.19 crore in FY23, with the EBITDA margin narrowing to 17.54%. On a per-unit basis, Ullu spent Rs 0.84 to earn a rupee of revenue in FY24. The company's total assets slightly dipped to Rs 70.11 crore in FY24 from Rs 71.63 crore in FY23. Meanwhile, cash and bank balances decreased significantly, down 71.7% to Rs 2.66 crore in the last fiscal year. In February, Ullu filed a draft red herring prospectus (DRHP) with the BSE SME for an initial public offering (IPO). The company proposed to raise funds via fresh issue of up to 62,62,800 equity shares. Notably, the company's DRHP doesn't have any offer for sale (OFS) component. While ambitions of raising public funding is as audacious as it gets, considering a business model built around dropping inhibitions it is no surprise. In the age of OnlyFans crossing $7 billion in revenues, Ullu might just have discovered the limits to growth as an organised player. Customers paying for the content it offers can keep convincing themselves that they like the jokes or the storyline as well, but the truth is, as Ullu grows, the pressure to conform only becomes greater. It faces a challenge of owning up to its ability and success selling smut, or watching a more brazen upstart take over even as Ullu falls into any one of the moral pitfalls it dances around every day. And as we keep saying, in the smut business, size remains a red herring, sure to attract the kind of official attention no amount of borderline porn will.

Groww files confidential DRHP with SEBI

EntrackrEntrackr · 1m ago
Groww files confidential DRHP with SEBI
Medial

Stock broking platform Groww has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential route, according to public notices published in newspapers on May 25. The pre-filing mechanism, introduced by SEBI in 2022, allows companies to privately submit their DRHPs. The document remains confidential until the firm decides to go public, giving companies greater flexibility in IPO planning. Groww is currently the largest stockbroking platform in India, with over 13 million active users monthly, according to NSE data. It commanded a 26.57% market share in February 2024, ahead of rivals Zerodha (16.25%) and Angel One (15.62%). Backed by Peak XV Partners, Tiger Global, Ribbit Capital, and Y Combinator’s Continuity Fund, Groww has raised around $400 million to date. Its last round was a $251 million Series E in October 2021, which pegged its valuation at $3 billion. The company is now looking to raise $200 million in a pre-IPO round, targeting a valuation in the $6.5–7 billion range. As part of this, Viggo Investments Pte Ltd has sought clearance from the Competition Commission of India (CCI) to acquire a 2.143% stake in Groww. On the financial front, Groww’s revenue from operations surged to Rs 3,145 crore in FY24, though the firm reported a net loss of Rs 805 crore, driven by a one-time tax expense of Rs 1,340 crore related to its redomicile to India. Several Indian startups have recently opted for the confidential filing route introduced by SEBI in 2022 to prepare for their public listings. This includes car marketplace CarTrade, logistics company Delhivery, Shiprocket, and consumer electronics brand boAt. Groww Disclaimer: Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investors here.

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