Ullu Digital, An Adult Content Streaming App, Files For The Biggest SME IPO
Delhi-based over-the-top streaming platform provides erotic web series, short films and shows.
Erotic content streaming platform Ullu Digital Ltd. has filed the draft red herring prospectus for an initial public offering with the BSE's small and medium enterprises platform.
The company has proposed to raise funds via fresh issue of up to 62,62,800 equity shares, according to its DRHP. The IPO will not have any offer for sale component.
Delhi-based Ullu is an over-the-top streaming platform that provides a range of web series, short films and shows targeted at an adult audience.
The company aims to utilise the funds from the offering for production of new content, purchase of international shows, purchase of state-of-the-art equipment and hiring of staff, working capital requirement and other general corporate purposes.
According to the DRHP, the tentative proceeds from the issue will be at least Rs 115 crore. So far, according to data compiled by Chittorgarh.com, the largest IPO in the SME segment has been by Spectrum Talent Management, which raised Rs 105 crore in June last year.
According to the prospectus, the company is led by promoter couple Vibhu Agarwal and Megha Agarwal, who collectively own 95%. Another entity, Zenith Multi Trading DMCC, has a 5% stake in Ullu.
Ullu's app and platform operate on a subscription-based model. It offers a weekly subscription for Rs 90, a monthly subscription for Rs 198 and an annual subscription for a fee of Rs 459. As of September 2023, the company had nearly 21 lakh active, paying subscribers.
"We collaborate with various production houses or independent creators or writers who take the lead in developing the concepts, scripts, and storylines...Our company is involved in deciding the budget and reviewing and providing feedback, but on-the-ground execution of the project is solely done by the production house," it said in the draft red herring prospectus.
In FY23, Ullu posted a revenue from operations of Rs 93.1 crore, more than doubling its Rs 46.8 crore revenue in FY22. Its profit jumped to Rs 15.1 crore in FY23 as compared to Rs 3.9 crore in FY22.
