Bengaluru’s storytelling giant, Pratilipi, just nabbed INR 10.11 crore (about USD 1.2 million) in a bridge funding round from Alteria Capital. With this funding round, Pratilipi IPO is a step closer to reality. The cash came in as a blend of debt and equity, with INR 5 crore in debt and INR 5.11 crore in equity. This follows hot on the heels of their December 2024 raise of INR 15 crore through optionally convertible debentures (OCDs) from individual investors.
Pratilipi’s latest funding round marks its commitment to keep growing and leading in the regional content market. The company, a hub for Indian storytellers, wants to keep pushing boundaries.
Timing It Right for Expansion
Ranjeet Pratap Singh, Pratilipi’s co-founder and CEO, shared some insights on this funding round. “We hit cash-flow positive back in July 2024,” he said, indicating that they’re at a point where they could choose profitability over growth by cutting back on investments. But, they’re choosing the latter. “We’re all about rapid expansion before the last two quarters of the year,” Singh emphasized. The new funds will fuel operational growth, product innovation, and deeper market penetration until mid-2025, setting the stage for a transformative leap.
Setting Sights on Pratilipi IPO
Founded back in 2015 by Singh along with Sankaranarayanan Devarajan, Rahul Ranjan, and Sahradayi Modi, Pratilipi now connects millions of readers and writers across 12 Indian languages, boasting 15 million subscribers and over 9,50,000 writers. Singh teased that they’re in talks to secure another USD 12 million later this month, which would aid in prepping for the Pratilipi IPO planned for early 2026.
Pratilipi’s strategy is to increase digital offerings, refine the platform’s features, and gain its reach to the International market. The aim here is to catch the wave of global interest in regional stories, positioning Pratilipi as a world leader.
A Financial Comeback Story
Financially, Pratilipi has shown some muscle. The company managed to slash net losses by 62% in FY23, bringing it down to INR 58.13 crore from INR 152.63 crore in FY22. On the flip side, Pratilipi’s operating revenue jumped by 65%, from INR 34.9 crore to INR 57.8 crore. Pratilipi is eyeing an operating revenue of INR 110 crore by FY25 and INR 180 crore by FY26.
A Storytelling Revolution
Pratilipi has been all about making storytelling accessible, which has not only attracted investors but also solidified its place in India’s content scene. With over USD 80 million raised from investors like Tencent, and Omidyar Network, among others, the company has expanded into comics, and podcasts, and even acquired Westland Books to broaden its storytelling empire.
In a world where quick video content rules, Pratilipi’s focus on long-form storytelling and regional literature has built a dedicated community, especially among young women. Their commitment to quality and engagement has given them a solid market presence.
Monetizing the Story
Intellectual property (IP) is where Pratilipi sees big money. They’ve turned popular tales like ‘Love Biye Aaj Kal’ and ‘Dehati Ladke’ into web series and TV shows, expanding their reach and boosting revenue through licensing and revenue-sharing deals. Partnerships with top production houses and streaming platforms are key in turning their stories into a steady revenue stream while shining a spotlight on their brand.
The funding winter of 2023 tested Pratilipi, forcing them to cut back on marketing from INR 41 crore to INR 6 crore. This hit new user acquisition but was critical for their survival. Their resilience, focusing on core strengths like user content and community, helped them bounce back and achieve cash-flow positivity by July 2024.
What Lies Ahead
With this bridge funding, Pratilipi is geared up for innovation and growth. Their roadmap includes expanding their IP, exploring international markets, and gearing up for Pratilipi IPO in 2026. The company is set to redefine regional storytelling on a global stage.
Pratilipi’s journey through this funding round underscores their resilience, vision, and dedication to empowering storytellers. As it continues to weave its narrative, Pratilipi stands as a beacon of innovation in India’s tech landscape, ready to tell stories that resonate far beyond its borders. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
