$7 million is secured in the Series B1 funding round for AdOnMo

Fund Raising
Preeti Bali / 9:20 am / March 27, 2024

AdOnMo, a leading ad-technology company specializing in targeted digital advertising, has secured $7 million in its Series B1 funding round. This marks the first significant investment for the company since its Series A round, led by food delivery giant Zomato in 2023.

Funding Breakdown and Strategic Use of Capital

The funding was raised through the issuance of a combination of equity shares and compulsorily convertible preference shares (CCPS). Healthcare industry veteran Ravindranath Kancherla and his son Kancherla Pruthvinath emerged as prominent investors, contributing Rs 16.6 crore. Qatar Insurance Company and ZNL Growth (Z Nation Lab) also participated in the round, investing Rs 8 crore and Rs 1.80 crore respectively. Additionally, the round attracted investments from a consortium of 36 individual investors.

The company intends to utilize the fresh capital to fuel business expansion initiatives and address working capital needs.

Valuation and Previous Funding

According to data platform TheKredible, AdOnMo’s post-money valuation is estimated at approximately Rs 858 crore, translating to roughly $105 million. In the current fiscal year, the company further bolstered its financial resources by securing Rs 20 crore in debt financing from Northern Arc and Alteria Capital.

Company Background and Growth Trajectory

Founded in 2016 by Sandeep Bommireddi and Sravanth Gajula, AdOnMo has established itself as a leader in targeted digital advertising solutions. The company’s core service is the placement of advertisements on outdoor digital screens in residential and corporate park settings across 21 Indian cities. With this latest funding round, AdOnMo’s total capital raised surpasses $25 million, including the $15 million secured in their previous round led by Zomato. Prior to this Series B1 round, Zomato held the largest external stakeholder position in AdOnMo with a 17.49% stake, followed by BAce Capital and Astarc Ventures.

Financial Performance

AdOnMo experienced significant growth in the last fiscal year, with operating revenue surging fourfold to Rs 75 crore. However, the company also reported losses of Rs 38 crore during the same period.

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