BookMyShow is currently India’s largest online entertainment ticketing platform spread across 5 countries and operating in almost 60 cities.
It was earlier running under the brand of Big Tree Entertainment Pvt Ltd. BookMyShow was founded by Ashish, Parikshit and Rajesh in the year 1999. It initially operated as a software reseller for movie tickets, but gradually ventured into cloud-based events, sports and movies. The company’s founders have seen several ups and downs since the inception of the company.
The proposition of selling entertainment tickets online was initially conceptualized by Ashish Hemrajani who started a small venture in his bedroom at the age of 24. Since its establishment, BookmyShow has been on a roller-coaster ride. The company has seen it all; it survived he Dot Com crash in 2007 and sailed through the global financial crisis of 2008.
It managed to sail through tough times and emerged as the hero in the end. BookMyShow has become a platform offering a plethora of choices for its customers. Customers can now book tickets and surf trailers anytime from anywhere.
BookMyShow has grabbed it all: cultural events, parties, concerts, shows, plays, fairs, and other international events as well. The company also introduced tickets for activities happening in one's vicinity. Booking has become easier than ever.
The company has been now following an upward trend in growth and innovations. In 2012, the company launched its Android and IOS app and since then, the company has never looked back. The app allows its users to check unto any event happening in and around them: timings, reviews, availability, trailers, and much more.
Revenue Model Of Book My Show
BookMyShow has almost 90% of the market share under the entertainment ticketing sector. It is called the king of all; despite emerging competitors, BookMyShow has managed to retain the leader's position.
The company’s quarterly revenue stood at $28 million in the last fiscal year. 50% came from the movie ticketing sector. $330 million of revenue comes from the live entertainment sector industry that includes sports, stand-up comedy, and other related events.
With the big guns relentlessly acquiring smaller competitors in this domain, a CAGR of 20% is expected in the online ticketing industry by 2020. The company has always focused on discounts especially on movie tickets and promotes payments through BookmyShow wallets; it's wallet is the major source of revenue that contributes about 60% of the total revenue.
The company charges a convenience fee over and above the price of the tickets. This difference is what BookMyShow keeps. As far as non-movie events are concerned, BookMyShow gets a commission from the sale of such tickets.
Also read : BookMyShow acquired Hyderabad-based MastiTickets
Non-Ticketing Revenue Strategy Of BookMyShow
BookMyShow follows a strategy of no refund after payment. It also has a source of revenue from non-ticketing means. Due to its large internet audience, it has the first-mover advantage and promotes new artists and their offering, therefore catching up a significant part of the revenue from promotional methods as well.
The business thrived despite no investor support from 2002 to 2006. After the Dot Com boom settled, the Indian market was revamped with better internet services, credit, and debit card facilities, and infrastructure setup. The number of multiplexes across India also proliferated. With a favorable scenario in the backdrop coupled with BookMyShows's promising business plan, investors were willing to put in their money in BookMyShow.
BookMyShow has raised total funding of over $224.5 million in 6 rounds. In the latest round of funding raised in January 2019, Singapore-based Jungle Ventures invested an undisclosed amount in Bigtree Entertainment Singapore Pte Ltd. (owned by BookMyShow SEA). BookMyShow started operating in South East Asia in 2016 with its headquarters in Indonesia. With funding from Jungle Ventures, the company is now planning to shift its headquarters to Singapore. As confirmed by BookMyShow SEA's CEO Kenneth Tan, the funds raised will be utilized to enhance the technological operations of BookMyShow SEA and to efficiently cater to the increasing number of users in the South East Asian region.
Sources say that before raising $100 million funding from 'TPG Growth' in July 2018, BookMyShow was valued at about $750 million. With the boost from TPG Growth, BookMyShow now hovers at around $850 million.