While most celebrity backed startups continue to struggle, Sachin Tendulkar backed startup Smaaash Entertainment is proving to be an exception. The indoor gaming and virtual sports company is reportedly planning to soon launch an IPO for raising Rs 500 crore from the capital market.
Sources close to the matter claim that Smaaash is mostly likely to go for an IPO in December 2018. Sources also claim that the company is planning to raise nearly $49 million from NSADAQ listed I-AM Capital, which acquired 24.5% stake in Smaaash earlier this year.
Most of the capital raised from the IPO will be used for funding inorganic growth initiatives, repayment of debts and for fulfilling its working capital requirements. According to crunchbase, the company has already acquired two companies to fuel its inorganic growth.
The company has so far refused to comment on the IPO report.
Smaaash was incorporated in 2012 by entrepreneur Shripal Morakhia, who also happens to be a film director and producer. The company operates state-of-the-art gaming and sporting arcades across several cities. These arcades offer top class entertainment through immersive & interactive games like cricket, football, go-karting, bowling etc.
The startup’s last fundraising round happened in March this year, raising nearly $6.17 Mn from group of HNIs. Prior to this, it raised Rs 90 crore and Rs 86 crore in two separate rounds in August last year.
Smaaash has certainly managed to hog lot of media limelight owing to its association with Sachin Tendulkar. The Indian cricketing legend is one of the several investors of the startup. Separately, the startup has also tied up Virat Kohli for brand endorsement.