One stumbling block that almost all players in this field face is finding funds, partly because this business cannot easily be categorised either as retail or service. Seventymm, however, convinced private equity firm Matrix India of its credibility, and crossed this hurdle. Matrix India co-founder and managing director Rishi Navani told
why he invested in the novel enterprise.
What do you consider before investing in a company?
We look at the market opportunity and size, which in the case of film rental is burgeoning by the day. We consider factors that make a product different. Then we look at the quality of the management team.
What convinced you of Seventymm's chances of success?
More than anything else, it was their adherence to the three Cs - choice, convenience and cost. They offer you 15,000 movie titles, which is at least a good 3,000 to 5,000 more than what you could expect from your local video guy. Then you have the convenience of the online media.
You can sit at home and have the films delivered and picked up. If you are not able to watch any of them, you do not have to pay late fees. And the cost is no more than what you would have to pay elsewhere.
Are you satisfied with your investment, and the market's growth?
About growth, time will be the best judge . We'd been approached by similar rental companies, but Seventymm had a management team that I would want to invest in. And this would be my advice to all those budding entrepreneurs: make sure your management team is strong because that is the factor that clinches the deal.