MUMBAI: Two weeks after reports first appeared that Indian motorsport was taking a second shot at introducing an IPL-templated racing league to the country, financial details have emerged.
X1 Racing League, the brainchild of Indian racing drivers Armaan Ebrahim and Aditya Patel, has secured investments that will cross Rs 1 billion over the next three years for the “development of the league and promotion of motorsports in India”.
A consortium of the Rattha Group from Chennai, Mumbai based White Unicorn Ventures, AngelList India LLP from Delhi, Jitendra Gupta of PayU and serial entrepreneur, founder and former CEO of FreeCharge Kunal Shah, have come together to invest in the racing league.
Furthermore, institutional investors like the Rattha Group, White Unicorn and AngelList have taken a long position on the League giving the founders freedom to invest in research and development that includes development of electric engines and hi-tech integrations, and assets like cars, engines, safety equipment and circuit infrastructure.
All the investors believe that the racing league is well-positioned with a made-for-TV and made-in-India product, that would be able to capture audiences across all age groups and gender. It is also a good mix of the traditional sports league along with the new-age technological inclusions, right from broadcasting the live content to the distribution of the content.
The X1 Racing League is expected to have a marketing budget of Rs 250-300 million to penetrate across all markets and capture a wide TG spectrum. Investors for the Racing League are backing the long-term vision of the league with a franchise-based model and unique race formats.
The championship, which is expected to kick off in the first quarter of 2019, will see eight teams competing in races at both track and street circuits in three cities.
As in the IPL, corporates will be invited to place bids for ownership of the eight franchises with the investment in teams reported to be around Rs 65-70 million, which would include custom-made cars, drivers and team operations.
Additionally, the league forecasts a break-even period of five-to-seven years for itself, while it expects the teams to break even within three years.
Talking about the association Utsav Somani of AngelList India said: “We are extremely excited to be supporting entrepreneurs who are passionate and dedicated to their particular art. For X1 Racing League, we got the best minds of the technology and business world to come invest together. Top angels like Kunal Shah and Jatin Aneja were part of this raise and will help open up doors for the success of the league. Unlike many early-stage investments, the X1 Racing League represents sound fundamentals and strong entry-barriers which made the decision straightforward.”
Rohit Chokhani – principal founder, White Unicorn Ventures added: “Motorsports has been in India for six decades, there has been considerable investment although this investment is majorly in international racing events. This league will create a weekend event for the host city, making it a proposition for global companies to position themselves to reach and engage with audience at a mass level, which has never been created before. The league is well-positioned for a global reach and make India a favorite destination for motorsports. With the growing interest in sports media properties across the world, and the ability to reach a large audience in India, we believe live content and IP rights will have exponential growth value and opportunities.”
Involvement of individuals like Jitendra Gupta and Kunal Shah offer access to capital that haven’t been tapped yet for sports and entertainment content, and to the tech ecosystem which is ripe for disruption with regards to sports advertisements and fan-engagement. This investment from a very strategic group of people has given the League the dynamism for growth.
“X1 Racing League is well-positioned for high-growth and scale. The long-term success will hinge on the broadcast rights and distribution platforms, and the reach but we’re confident with the innovations in product, packaging and the marketing strategy that has been mapped out, the media valuations would show right after the first edition. With the penetration of sports at an all-time high and the high spends in sports media, I’m excited where this can go. I look forward to helping the founders and the management establish, grow and scale the league,” said Kunal Shah.
“X1 represents a good mix of the traditional sports league along with the new-age technological inclusions. The target group that is being addressed is the fastest growing audience and capturing them through innovative game format and engaging them creates a very holistic ecosystem to scale and monetize,” added Jitendra Gupta of PayU.
Each team in the league would reportedly have two four drivers per team, which would include one international male driver, one international female, one Indian international driver and one Indian domestic driver.
The league is backed by the FMSCI and will be run over four weekends, with a total of 12 races. Meanwhile, there is also talk of a year-long domestic season, in addition to the main league.
It was in 2011 that there was last talk of a motorsport league in India – i1 Super Series – wherein nine city-based teams in India were to participate in the racing competition that was to be held in India, UAE, Malaysia, Bahrain and Qatar. For the record, after multiple changes in launch dates, the event failed to get off the ground.
While motorsport has grown in India over the last few years, it is still far from being popular and far-reaching. The introduction of this televised league is expected to increase the reach of the sport and raise awareness about motorsport in India.
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