Bigtree Entertainment acquires Ticketgreen.com
Bigtree Entertainment, which runs the online ticket company BookMyShow.com, has acquired a Chennai-based entertainment ticketing portal, Ticketgreen.com, underlining the growing consolidation in the country's ecommerce sector.
This is the third buyout of an online commerce company by a larger rival this year as paucity of risk capital forces many young companies to seek exit options.
"When the winds are high all the boats squeal, it is only when winds drop you know which are good to sail," said Ashish Hemrajani, founder and chief executive officer of Bigtree Entertainment, who did not disclose the financial details of the transaction.
The deal will give Bigtree access to partnerships with over 100 regional cinemas that Ticket green has forged in the southern states where it sells nearly one lakh tickets per month. Around four billion movie tickets get sold in India every year.
"Growth in the multiplex space will in turn drive growth of on-line ticket booking companies," said Raja Lahiri, a partner at Grant Thornton, a consulting firm.
BookMyShow retails tickets for the latest movies, music concerts, plays, stand-up comic acts and major sporting events in the country. It has associations with over 350 cinemas and theatre venues such as Mumbai's Prithvi Theatre, India Habitat Centre in Delhi and Rangashankara in south Bangalore. A significant portion of its revenues come from managing non-movie events including Formula 1 and Indian Premier League. Last year the company received funding of 100 crore from early stage investor Accel Partners.
India's e-commerce industry is witnessing a spate of acquisitions as many smaller companies are unable to raise follow-on funding to sustain operations. There were 15 mergers and acquisitions in the sector in 2012, according to data from research firm Venture Intelligence.