Zomato-backed AdOnMo Scoops Up $7 Million from Investors

Zomato-backed AdOnMo Scoops Up $7 Million from Investors

AdOnMo, an ad-tech company, has mopped up INR 58.21 crore in its Series B1 round. After the Series A round, which was led by Zomato, this is the first infusion in the Hyderabad-based firm. A special resolution has been passed by the board at AdOnMo to issue 36 equity and 4,156 CCPS at a price of INR 1,38,850 each to scoop INR 58.21 crore, revealed from its regulatory report with the Registrar of Companies (RoC). 

Healthcare professional Ravindranath Kancherla and his son Kancherla Pruthvinath invested INR 16.6 crore. On the other hand, Qatar Insurance firm and ZNL Growth pumped in INR 8 crore and INR 1.80 crore, respectively. The Series A round funding of AdOnMo is led by three dozen individual investors such as Usha Reddy Chigarapalli, Desireddy Srinivasa Reddy, Manish Kailash Chhabra, Vikram Malhotra and Vindhya Guduru. As per the report, the firm will use the investments to expand business and meet working capital requirements. 

As per the latest startup news taken from TheKredible, a startup data intelligence platform, AdOnMo has been valued at around INR 858 crore or $105 million. During the ongoing accounting year, the firm also mopped up INR 20 crore in debt from Northern Arc and Alteria Capital.

AdOnMo, founded in 2016 by Sandeep Bommireddi and Sravanth Gajula, provides targeted digital advertising to outdoor digital screens across 21 cities. Currency, the firm has scooped up around $25 million in all rounds consisting of the $15 million round led by Zomato last year. Zomato was the biggest stakeholder of AdOnMo with a 17.49% stake followed by BAce Capital and Astarc Ventures, before this round. It's worth highlighting that AdOnMo grew at a rapid clip in the last accounting year with its operational revenue rising four-fold to INR 75 crore in FY23. Meanwhile, the losses the company has faced stood at Rs 38 crore in the same period.

The Take of YFS on AdOnMo’s Investment Story

The investment story of AdOnMo is truly encouraging. The latest investment has further reinforced investors’ confidence in its business model. Investors feel confident from its four-fold rise in operational revenue in FY23. Hope the Zomato-backed company will continue to make rapid strides in the ad tech segment, reckons Your First Startup (YFS).