E-commerce firm Flipkart has entered talks to acquire a “large” minority stake in BookMyShow, the India-based online ticketing platform backed by media company Network18, LiveMint reported today.
The deal is expected to value BookMyShow at between $500m and $700m, according to three people familiar with the matter, who said Flipkart had originally attempted to acquire the company.
Founded in 1999 as Bigtree Entertainment, which still operates the brand, BookMyShow runs an online portal where customers can buy tickets for a range of events including films, concerts, sporting events and plays.
The company is present in four countries. Its app has been downloaded more than 34 million times and it sells more than 10 million tickets a month.
Network18 is BookMyShow’s largest shareholder, with a 39% stake. It invested an undisclosed amount in 2007, before venture capital firm Accel provided $18m for the company in 2012.
BookMyShow received $25m from Network18, Accel and SAIF Partners in 2014 at a $166m valuation, before all three returned for an $81m round led by private equity firm Stripes Group in July 2016 that valued it at $440m.
Flipkart, which raised $3bn in funding earlier this year, is said to be interested in acquiring or partnering the company in order to increase its access to affluent urban Indians, a market segment BookMyShow is popular with, and to expand the range of services it offers.