AdOnMo, a startup in the advertising technology (AdTech) sector, has recently raised INR 58.21 crore (approximately $6.99 million) in its Series B1 funding round. The company’s board approved a special resolution to issue 36 equity shares and 4,156 Compulsorily Convertible Preference Shares (CCPS) at an issue price of INR 1,38,850 each, resulting in the total funding.
Ravindranath Kancherla, the founder and chairman of Global Hospitals Group, along with his son Kancherla Pruthvinath, invested INR 16.6 crore in the funding round. Qatar Insurance Company and ZNL Growth (Z Nation Lab) contributed INR 8 crore and INR 1.80 crore, respectively.
AdOnMo Transforming Outdoor Advertising with Strategic Investments
AdOnMo, a startup founded in 2016, specializes in outdoor advertising solutions, employing cloud-connected digital screens for targeted, real-time ads. Following Zomato’s significant investment of INR 112.20 crore in 2022, acquiring a 19.8% stake, AdOnMo recently secured additional funding, including contributions from healthcare veteran Ravindranath Kancherla and others, totalling INR 26.4 crore. This funding and participation from individual investors, such as Manish Kailash Chhabra and Vindhya Guduru, is earmarked for expanding business operations and fulfilling working capital needs, aligning with AdOnMo’s vision to innovate outdoor advertising.
Driving Outdoor Digital Advertising
According to TheKredible, AdOnMo, founded in 2016 by Sandeep Bommireddi and Sravanth Gajula, is now valued at approximately Rs 858 crore or $105 million post-money. During this fiscal year, the company secured Rs 20 crore in debt from Northern Arc and Alteria Capital. AdOnMo specializes in ad tech, offering targeted digital advertising on outdoor screens in residential and corporate parks across 21 cities. The company has raised around $25 million in funding, including a $15 million round led by Zomato last year. Zomato was the largest external stakeholder, with a 17.49% stake before this recent round. Despite significant growth, AdOnMo reported losses of Rs 38 crore alongside a four-fold increase in revenue, reaching Rs 75 crore in FY23.
AdOnMo’s Funding Journey
Since its pre-series funding round in 2020, where it raised $3 million from investors including Alibaba’s Bace Capital and Astarc Ventures, AdOnMo has witnessed significant growth, with its revenue surging to INR 75 crore in FY23. However, the company reported losses of INR 38 crore during the same period. India’s Out-of-Home (OOH) advertising market is on the rise, fueled by innovative digital platforms and strategic campaigns, with projected ad spending reaching $589.7 million in 2024, according to a Statista report, indicating substantial opportunities for expansion and innovation within the industry. AdOnMo’s revenue from operations soared four times to INR 75 crore in FY23, reflecting its strong position in India’s growing Out-of-Home (OOH) advertising market. The industry is propelled by innovative digital platforms and targeted location-based campaigns.
Also Read: Startup Mahakumbh: PM Modi Addresses Entrepreneurs, Know the Key Highlights
9Unicorns’ Fifth Global Demo Day: Over 20 Startups Set to Secure $110M in Funding
Byju’s Governance Failures Call for a Regulatory Overhaul in the Startup Ecosystem
