Starzplay eyes IPO simply by 2024 amid projects to double its business

03 February, 2021
Starzplay eyes IPO simply by 2024 amid projects to double its business
Dubai-based Starzplay, the center East and North Africa's fastest-developing video streaming service, is going to be eyeing an initial public offering by 2024, propelled by a surge popular during the pandemic.

The approach is part of wider growth plans to double its income and subscribers within 3 to 4 years, Maaz Sheikh, co-founder and chief executive of Starzplay, told The National.

Revenue grew 50 % year-on-year found in 2020, he said, declining to disclose current or aim for amounts. It finished the entire year with 1.83 million subscribers and is targeting almost 4 million by 2024.

"We realised that what we've accomplished up to now, though extensive, can be scratching the surface," Mr Sheikh stated. "There's far more growth in your community and much more possibility to come."

To fund its expansion, the six-year old organization secured $25 million with debt funding from Abu Dhabi-structured Ruya Partners, an independent alternative investment firm centered on private credit in growing markets.

"The primary purpose of this expenditure is to create Arabic content material and build awareness through marketing of our provider in Gulf marketplaces," Mr Sheikh said. "Heading from 2million to 5 million subscribers within the next five years must come from Arabic content."

Starzplay is dealing with Image Nation Abu Dhabi to create its first original present and expects to start out shooting the Arabic mini-series this year, following a delay as a result of Covid-19 pandemic. Stated in the UAE with on-screen and behind-the-cameras talent primarily from the united states, the pan-regional express will focus on people tales from the UAE, Saudi Arabia, Oman and Morocco.

"Starzplay is our 1st investment in tech ... we have a view to comprehend the sector, positioning of the company for the reason that sector and the supervision team executing the technique," Rashid Siddiqi, co-founder and managing spouse of Ruya Partners, said within an interview. "All of those boxes for Starzplay [score] high marks."

While the streaming service program serves the center East and North Africa place, the four key market segments that fuelled its growth will be the UAE, Saudi Arabia, Egypt and Morocco, which continue being focus areas, Mr Sheikh said. Starzplay lately expanded its existence in Iraq and Libya with an increase of locally-relevant articles and intensified marketing.

Starzplay says it keeps 32 per cent market show of the subscription training video on demand (SVOD) products and services in the Mena area with ambitions to grow its geographic reach and subscriber basic.

"We're very near profitability and we're on a solid trajectory towards an effective IPO," Mr Sheikh said.

Under its current projections, the business expects to break even by the finish of 2021 also to record its 1st full year of profitability in 2022, the executive said.

A listing can be on the cards, though he said it really is too early to choose where in fact the shares will get floated.

"We’ve set a roadmap for 3 years, if we keep up with the current growth amount and profitability metrics," Mr Sheikh said.

The Covid-19 pandemic brought with it a surge of subscribers that subsequently ebbed before picking right up in September, he said.

The executive pointed to two patterns of consumer behaviour changes through the pandemic, one non permanent and the other more enduring.

At the start of the virus outbreak, motion restrictions that forced families to remain in the home prompted them to search out more entertainment options.

"In terms of consumption, we grew more in the six weeks between March and April than previously six years from latest and existing users," he said, noting that more people logged in per accounts and intake increased by up to four-fold. "This is a short-term trend, this lift isn't sustainable, and as the market opens up and persons venture out more, we expect this sort of peak to level off."

The more enduring trend may be the brand exposure that it gained during this time period.

"What the pandemic performed is it created organic demand for our services. There is no substitute for that. That's where I'm very worked up about what the near future holds for all of us," Mr Sheikh explained. "Because what the last half a year did for all of us, we couldn’t gain with thousands of dollars in ads."

Starzplay isn't seeking further funding to back its expansion in the next 3 to 4 years, as the $25m from Ruya Partners "presents plenty of expansion capital and breathing bedroom to proceed comfortably", he added.

Ruya Partners, based at Abu Dhabi Global Industry, is a portfolio purchase of Abu Dhabi Catalyst Partners, a jv between Mubadala Investment Enterprise and Falcon Edge Capital.

"We evaluated the business enterprise model of Starzplay, which ultimately shows great promise for growth, especially with the growing popularity of SVOD in your community," Mirza Beg, co-founder and managing partner of Ruya Partners, explained in a statement.

Starzplay, that was founded in 2015, has secured $125m found in equity financing through Starz, a good Lionsgate company, Express Street Global Advisors and technology purchase companies SEQ Capital Partners and Delta Partners. 
Source: www.thenationalnews.com
TAG(s):
Search - Nextnews24.com
Share On:
Nextnews24 - Archive