MUMBAI: Smaaash Entertainment Private Limited, the Indian virtual sports and entertainment firm controlled by serial entrepreneur Shripal Morakhia, is planning to raise anywhere between $25 million (Rs 1.75 billion) and $30 million (Rs. 2.1 billion approx) from investors in the USA, Economic Times reports.
This is Smaaash’s second attempt to secure funding in the US. In May 2018, Nasdaq-listed special purpose acquisition company, I-Am Capital had signed an agreement to acquire a 24.5% stake in the company for $49 million.
While in July, Smaaash announced its plans to raise Rs 5 billion through an initial public offering (IPO) by the end of this year.
“We have decided to invest aggressively in India and follow an asset-light model in overseas markets. For expansion in India, I am currently talking to investors in the US and looking to close a funding of $25-30 million soon,” Morakhia told ET.
He opines that due to the company being undervalued, raising funds in India at present would not make commercial sense.
“Currently I have 35% stake and I don’t want to dilute in India as the investors don’t take into account the value of IP (intellectual property). We have been selling our proprietary VR (virtual reality) and simulator games internationally, which have been installed in 30 plus countries until now.
“In the US, we want to create two types of models – cricket related centres in eight cities targeting Indian diaspora, one model centre and the rest franchises,” Morakhia added.
As a part of its strategic expansion plan, Smaaash is looking at upping the number of gaming centres from 36 to 60 by March 2019 across the country and targeting the likes of USA, Thailand, UAE and Saudi Arabia overseas through partnerships and franchises.
Smaaash has a centre in the Mall of America in Minneapolis and a day every year has been named to pay tribute to Morakhia’s contribution to the local community by Mayor Mark Dayton. In the UAE, the company recently confirmed its partnership with Dubai’s top indoor cricket and multi-sports facility, Insportz Club.
“We will be converting Insportz into an aspirational gaming centre. We have also partnered with a local businessman in Saudi Arabia to launch an 80,000 square feet Smaaash centre. We see a huge potential in Saudi Arabia as there is a large population of millennials and a higher disposable income,” Morakhia concluded.
