FidelisWorld To Invest In Two Indian Sports Centric Companies

FidelisWorld, a sports investment fund is in the process of investing in two Indian companies that are in the field of offering sports related services.

Dubai based FidelisWorld, focuses on Asian markets and is particularly interested in two Indian companies; Smaaash Entertainment and Technology Frontiers (Techfront). FidelisWorld is a US$ 200 Million Investment Fund floated by former JP Morgan banker Anand Krishnan. The fund focuses on investing in established companies by reputable founders and buys stake in lieu of funding.

FidelisWorld has already closed US$ 23 Million funding by exchanging stake for cash with Technology Frontiers (Techfront). The latter is in-stadia (in-stadium) sports management firm. Techfront offers brand management and promotion in premier sporting events like F1 Racing, English Premier League football event, international Cricketing tournaments, etc. Interestingly, Techfront won’t have to part with more stake as the present round of funding is offering a lucrative exit to existing investors.

Techfront clocked revenues of about Rs. 185 Crores (US$ 30 Million) and had an Operating Profit of Rs. 45 Crores (US$ 7.3 Million) in 2013. If the exchange is compared against the stake, Techfront is currently valued at US$ 80 Million.

The other company that FidelisWorld has chosen to offer funding is Smaaash Entertainment which is jointly owned by Shripal Morakhia, (founder –Sharekhan and Investment Bank SSKI) and cricket icon Sachin Tendulkar. Smaaash offers augmented reality simulators to play cricket and race F1 cars. Though the service is presently limited to Mumbai only, the company has plans for expansion.

Foreign companies have restrictions in direct investment in eCommerce companies. However, these companies do not strictly fall under this category. Sports related business has been growing well in India. Multiple sports celebrities have gotten involved in offering sports related products online. Let’s see how well FidelisWorld manages to enhance its investment.

Source | ToI

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