Gurugram-based social entertainment network Roposo has raised INR 72 crores ($10 million) in a funding round from existing investors Bertelsmann India Investments and Tiger Global. The startup will use the freshly raised capital to hire new talents for machine learning for personalization, build great content creation tools, improve marketing and getting prepared for more funding in future.
Founded by Kaushal Shubhank, Avinash Saxena and Mayank Bhangadia in 2014, Roposo was initially started as a fashion discovery platform that used a proprietary recommendation algorithm to match shoppers with each other. Earlier the company raised $21 million from Tiger Global, India Quotient, Binny Bansal and others till 2016. The company claims to have 2.5 million users onboard till June 2016.
In August 2017, the company changed its business model and transformed the mobile app to a short-video application as it expanded the portfolio choices. The company claims to have recorded a 75 times growth in its daily active user base since it changed its business model.
However, in August 2017, the company changed its business model to a short-video application as it expanded its portfolio choices. Roposo rebooted as ‘TV By The People’ and continued to grow marginally; it claims to have recorded 75X growth in its daily active user base since then. It now offers a TV like browsing experience with 25 interest-based channels in 10 languages.
According to a BCG report, the content market is expected to reach $5 billion by 2023. The trend is supported by programmes like Digital India as well as the introduction of cheap and fast internet by operators like Reliance JIO and Airtel. Pivoting to a video platform may be a smart move in such transforming times for Roposo.
Earlier in November this year, Roposo raised around INR 12 crores ($1.7 million), in a fresh funding round from Bertelsmann India Investments. The funding valued Roposo at INR 174 crores (around $25 million) which were lower than the post-money valuation of INR 478 crores in April 2016.
Some of the startups catering to the growing market in this segment include Clipp App, Samosa Labs and ShareChat among many others. ShareChat raised INR 720 crores from Shunwei Capital in September this year. While Samosa Labs has raised INR 48 crores from Xiaomi and Sequoia Capital in August this year.