BookMyShow began by delivering printed tickets on users’ doorsteps during the first decade of its operations. The Ashish Hemrajani-led firm hasn’t only managed to survive but also scaled itself to half a thousand crore revenue-making entity.
Although the overall expenses of BookMyShow increased by nearly 30% to Rs 733.5 crore in FY19 from Rs 567.5 crore in FY18, the firm managed to control its losses which amounted to Rs 115.2 crore in FY19, almost 29% down from Rs 162.2 crore in FY18. On the expenses front, the biggest cost driver was the amount paid by BookMyShow to movie theatres to honour their revenue-sharing agreements. It made up nearly 24% of the total expenses incurred by the company.
Similarly, the net cash outflows from operations were also reduced drastically. These outflows were reduced by nearly 60% to Rs 128.7 crore in FY19 from Rs 322.4 crore in FY18. Unit economics also improved by 15.2% as the company spent Rs 1.23 to generate a single rupee of operating revenues as compared to Rs 1.45 it spent for the same in FY18.
According to its annual regulatory filing, its operating revenue grew by 52% to Rs 594.2 crore in FY19 from Rs 391 crore in FY18. This surge in revenue is driven by an 8.4X jump in earning from live events. The vertical contributed Rs 105 crore in FY19 as compared to only Rs 12.5 crore in the previous fiscal. Revenue rose by more than 52% to cross Rs 619 crore for fiscal 2019, up from Rs 406.09 crore in Fy 2017-19, as the Mumbai-based company recorded growth across multiple verticals, including live events, online ticket bookings and software, and turnkey ticketing solutions.
BigTree Entertainment is in the process of closing a new $100 million financing round with American multinational investment bank Goldman Sachs.
The company has pumped capital in its business while growing its scale efficiently. During FY19, it raised Rs 680 crore through issue of shares to fuel this growth. Courtesy this capital infusion the total assets of the company doubled, standing at Rs 1,265.2 crore at the end of FY19 while also paying back borrowing of Rs 50 crore during the same period.
The survival of BookMyShow has been a classic example of commitment, patience, perseverance and the unflinching belief of the founding team and other stakeholders in the company. Hemrajani, Parikshit Dar & Rajesh Balpande are true outliers and they inspire the entire ecosystem with their spirit of entrepreneurship.