Zomato-backed AdOnMo raises $7 Mn

Ad-tech company AdOnMo has secured Rs 58.21 crore (approximately $7 million) in its Series B1 funding round, marking a significant investment milestone for the Hyderabad-based firm since its Series A round led by Zomato last year.

As per regulatory filings with the RoC, the board of AdOnMo has approved a special resolution to issue 36 equity shares and 4,156 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 1,38,850 each, raising a total of Rs 58.21 crore or $7 million.

Healthcare veteran Ravindranath Kancherla and his son Kancherla Pruthvinath contributed Rs 16.6 crore, while Qatar Insurance Company and ZNL Growth (Z Nation Lab) injected Rs 8 crore and Rs 1.80 crore, respectively. Additionally, thirty-six individual investors, including Manish Kailash Chhabra, Vindhya Guduru, Vikram Malhotra, Usha Reddy Chigarapalli, and Desireddy Srinivasa Reddy, participated in AdOnMo’s Series B round.

The funds raised will be utilized for business expansion and to fulfill working capital requirements, according to the filing. According to startup data intelligence platform TheKredible, AdOnMo’s post-money valuation stands at around Rs 858 crore or $105 million.

During the current fiscal year, the company also secured Rs 20 crore in debt funding from Northern Arc and Alteria Capital.

Founded in 2016 by Sandeep Bommireddi and Sravanth Gajula, AdOnMo specializes in providing targeted digital advertising to outdoor digital screens in residential and corporate parks across 21 cities.

To date, AdOnMo has raised approximately $25 million across various funding rounds, including a $15 million round led by Zomato last year. Prior to this latest round, Zomato held the largest external stake in the company with a 17.49% ownership, followed by BAce Capital and Astarc Ventures.

In the previous fiscal year, AdOnMo witnessed significant growth, with its operational revenue soaring four-fold to Rs 75 crore in FY23. However, the company reported losses amounting to Rs 38 crore during the same period.

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