Abundantia Entertainment seeks $30 million in funds: it plans to use it

When they first started in 2013, Abundantia Entertainment was not a name that many knew, even in India. However, their films and shows have since made a lot of noise. The Indian production house is now seeking investors worth $30 million. With Anil Kapoor-starring action film Undergrowth Scheduled for release in 2025, the company is considering bigger steps. In an exclusive interview, Abundantia Entertainment Founder and CEO Vikram Malhotra shares his plans for 2025 and beyond.

It all started with Neeraj Pandey’s high-octane spy thriller baby in 2015. Kumar’s social drama directed by Shree Narayan Singh, Ek Prem Katha Toilets, came next in 2017 and proved that Abundantia Entertainment believes in supporting unconventional ideas that ultimately turn out to be profitable businesses. Their digital debut with Prime Video’s original web show in India Breathe in the Shadows (2018) starring Abhishek Bachchan and R Madhavan, was also quite impressive. Abundantia Entertainment is now seeking investors in hopes of expanding and accelerating its content creation worldwide.

Abundantia Entertainment Seeks $30 Million in Funding: How They Plan to Use It in 2025

Abundantia Entertainment Financing: Plans and Target

In response to reports that her company is seeking around $30 million in funding, Malhotra said she has been evaluating opportunities for the past few months. He neither confirms the amount nor denies it. The founder of Abundantia Entertainment goes on to talk about the reasons that made them search for more now. “There are three main reasons why I am actively exploring capital injection. First, it will allow us to strengthen our content list. There are strong ROI indicators for the roster offered by Abundantia Entertainment. We maintain substantial relationships with major strategic market players, platforms and studios. The second reason is that the availability of capital within the organization will allow us to improve our financial margins behind these projects. We are not going to transform our balanced risk-taking model into aggressive risk, but we can choose business models that we build behind our projects with the additional funds.

Citing this as a third reason, Malhotra admits that the funding will also help him grow his team, creating more creative bandwidth and production within the company. “Especially with a view to international expansion. I’m not talking about cinema or crossover shows; I’m not talking about the films or shows that we produce in India and find their market abroad. We already do it. I’m talking about building infrastructure and capabilities that enable Abundantia Entertainment to be a content exporter. We are already seeing successful examples of how countries like Korea and Israel have become major contributors to digital platforms. There are also examples of theatrical releases that have resonated with audiences around the world. There is a significant opportunity to bring uniquely Indian stories to a global audience, which will involve producing and creating in India and for Indian and overseas markets.

Expressing hope for “disproportionate inorganic growth”, Malhotra insists that the production house is not looking for capital to continue business “as usual”. It reminds us that in an era where a single film has a budget of over $40 million when it stars big stars, seeking $30 million may not seem like a big feat . “Funding should always be for organizational and capacity building strategically rather than project funding. We are not considering these funds for initial funding.

Asked about foreign investors, Malhotra said he was not at liberty to divulge details, but confirmed that two active conversations were underway, both for a strategic partnership and financial investments. “They are not necessarily mutually exclusive as they relate to the objectives of each type of investor. Abundantia Entertainment occupies a somewhat unique position in our peer group. Not only are we independent and non-legacy, but we also have a strong focus on the consumer side on the kind of evolving landscape that’s emerging – more streaming-focused, more progressive. and new age content. This combination with a fairly strong pre-sold listing could generate significant value for all parties involved.

Elaborating on his company’s near-term plans, Malhotra says Abundantia Entertainment is planning to venture into low-budget films, with the number of films increasing even for the digital space. “This additional capital (from the financing they are seeking) available will allow us to present these films in theaters. The real advantage still lies in the theater sector and we are very optimistic about that. This will allow us to be selective about what we pre-sell and what we keep. We can be more selective with risk-free projects and those where we want a certain balanced level of risk.

India and the West

Asked about the difference in content production and consumption in Indian and Western markets, Malhotra lists a few. “There are certain attributes that make the Indian production and consumption scenario quite unique compared to the Western world. The first is that streaming is an extremely new phenomenon here. The dominance has been aggressive from a subscription consumption perspective over a short period of time. But in reality, we’re only seven or eight years in – it’s just a small one in the overall life cycle. Once we see consolidation here and the goals shift from subscriber acquisition to stable play and engagement, we will see safe growth. He believes this is a major advantage Indian players have over the West, where the market is almost plateauing.

“Unlike the West, the cost of accessing content is relatively much lower in India. We are not a market where streaming is growing at the expense of television. There may be a shuffle between advertising dollars and consumer preferences, but it’s all additive. You have a linear streaming connection, you also get a few apps for on-demand consumption, and you still go to the movies. This makes India a very unique market. I’m not saying that there won’t be growth at the expense of others. But, from a global point of view, it will not be a clash between one and the other, nor one of the two falling into oblivion. »

Evolving markets

Dwelling on the changing ways of watching cinema in cinema halls, he said, “I think low-budget, high-impact, clutter-free films are the need of the hour. (Right now,) What we serve (to theater audiences) follows a kind of universal strategy. There are large underserved market segments that have the opportunity to come to the theater for the same community viewing experience. Abundantia Entertainment is already building a model that addresses film production without the need for dramatically high budgets.

Understand the market

Malhotra reveals that they are trying innovative ways to gauge the audience and understand their preferences. “This is an under-studied industry and unfortunately, that won’t change anytime soon. We have installed tracks in Abundantia to speak to the public. When we create content for younger segments, we’re not necessarily reading the market from the movies and shows they watch. We focus on their attitudes and life preferences. Are they as concerned about social issues as previous generations? They are probably more so than the previous generation. This is an opportunity to tell socially and environmentally responsible stories.

“Look at their relationship to money and material well-being. At Abundantia, we are constantly evaluating how cross-demand works. For example, we assess how food and beverage consumption is linked to the growth of streaming services, their segment and content types. We even did an internal study on the type of food people eat when they binge watch at home. What are the types of growth areas in terms of food delivery businesses? This gives you an overview. In many ways, subjective industry data can largely only be indicators. This is an industry where the majority of consumer choices are made in a fraction of a second, one class away from impulse.

2025 Plans and Abundantia Entertainment 2025 List

“I’ve always been very proud of the fact that Abundantia has a very purposeful sensibility that has remained our identity and who we are in many ways over the years. I see that we are only further accelerating this skill, this sense and this sensitivity. We have a very clear focus on underserved genres – like horror, youth-centric, clutter-breaking stories, and stories based on societal ideas in and around us. We want to tell these stories in the most compelling and relevant way possible.

Abundantia Entertainment has an interesting upcoming slate for the year 2025. The first teaser of Anil Kapoor-starrer Undergrowth was revealed on Tuesday. Several other films and shows, including a commercial drama by Hansal Mehta, a crime drama by Randeep Jha and a film by Palash Vaasvani. The skate also includes that of Bhumi Pednekar Daldal and that of Nushrratt Bharruchha Chhorii 2.