VC funding movies in India August 11, 2006Posted by rajAT in india, movies, venture capital.
Venture funds are now eyeing Indian movies. Chennai-based Pyramid Saimira Theatre is setting up a $150m fund for production and distribution of regional and Bollywood movies.
Pyramid Film Fund will unveil itself over the next nine months in three avatars of $50m each — based on the level of risk and exposure.
The Pyramid group will sponsor around 25% of the fund, while the remaining is being raised from venture funds and institutional investors. The movies that the fund finances — mostly in the mid-budget range of Rs 5-10 crore — will be distributed and exhibited by Pyramid group through its country-wide theatre chain.
Pyramid group, which is currently focused on exhibition markets in Andhra Pradesh, Tamil Nadu and Karnataka with around 120 screens, has chalked out plans for country-wide presence with around 2,000 screens by December ‘07. As part of its foray into north India, the group has tied up with Delhi-based developer Spirit Global for presence in 60 malls across Punjab.
Funds’ first project, Dasavatharam, will be released with over 1,000 prints across the country in April next year, and dubbed in several regional languages, including Hindi and Telugu. Talks are currently on to finance few Bollywood movies, including several regional language ones.
Over the last three-four years several corporates, including the ADAG, Tata and Aditya Birla groups have set aside corpus for financing and distribution of movies.