NEA-IndoUS Ventures, an India-focused investment firm, has led a $12 million (€8 million) round of Series C funding in Seventymm, a Bangalore-based movie rental company. US venture firm ePlanet Ventures, a Draper Fisher Jurvetson spin-out, was also invested.
Vani Kola, a managing director at NEA-IndoUS, will join Seventymm’s board.
Seventymm is India’s largest movie rental service with more than 70,000 customers and it has operations in Bangalore, Chennai, Hyderabad, Delhi, Mumbai and Chandigarh.
The company is looking to have a membership of 4 million in the next five years, and to have operations in 40 cities by the end of 2009. The capital infusion will be used to accelerate the company’s expansion plans, to improve customer service and to add new features to its services, Seventymm said.
NEA-IndoUS is investing out of a $190 million fund. Kumar Shiralagi, a managing director at the firm, told PEO that the firm has made about 14 investments from the fund since it started making investments in June 2006. The firm looks to invest between $5 million and $8 million per deal, he said.
Shiralagi said that the firm “typically invests in technology and technology-enabled companies”. He added that the firm does not invest outside of the technology sector unless a company is using a technology “which can enable a paradigm shift in the industry” it is being used in.
Industries invested in include information technology, business process outsourcing, knowledge process outsourcing, media and entertainment, telecom and semiconductors. Investments are made either in Indian companies, or in companies that are based in the US but have strong connections to the Indian market.
The firm has announced four other investments in the last month or so. They include Basiz Fund Services, a back-end accounting KPO for fund administrators; IDenizen Smartware, which provides software solutions and enterprise resource planning for educational campuses; PreMedia Global, a BPO provider for e-publishing; and Attero Recycling, an e-waste management company.
Previous venture investors in Seventymm include Matrix Partners India and Draper Fisher Jurvetson.
NEA-IndoUS is an affiliate of US venture capital firm New Enterprise Associates.