The putting together of a traditional online video content creator ‘The Viral Fever’ (TVF) by Tiger Global Management Llc has spent $10 million (Rs.65.6 crore) of investment. According to the registrar of companies (RoC), the venture which was made in Contagious Online Media Network Pvt. Ltd is a minority but significant having acquired close to 25% stake in the firm which translates to around Rs.270 crore.
Contagious Online Media Network Pvt. Ltd was incorporated in July last year and according to filed information with RoC, it reported proceeds of Rs. 64 lakh and a profit of Rs. 22 lakh for the period from August 3 to October 21. TVF, which was founded in 2010 by IIT graduate Arunabh Kumar, is well known for the production of online video games. It is a one of India’s favorite online digital entertainment channel that targets the youth.
However, both Tiger Global and the TVF founders declined to comment on the channel’s development in as much as the trend of creating online video content has significantly picked up in the recent years. In particular, the comedy genre has led to the advent of several groups the likes of All India Bakchod, East India Comedy and some other stand-up comics.
In support of the launch of the channel, Kumar argued that the younger generation seldom watches the television either for entertainment purposes or to pass the time. But it could be wrong for anyone to think that the content creators are just doing this for laughs. No, they are not. There is earnest money to be made with a total of $54 million having been won by the 10 top earning content creators on YouTube for 2014 and 2015.
It is not the first time that Tiger Global is in the limelight and of course for the right reasons. Alongside venture capital fund Zodius Capital, Tiger Global invested $18 million in Culture Machine that runs several YouTube channels among them Being Indian.
It is clear that Tiger Global is a big time investor having obtained investment slots in more than 50 companies and mostly those in the consumer internet sector. It has so far earned a distinction of being the most active start-up investor having invested an estimated $2 billion-plus in various companies.