Report: Indian film fund seeks $50m in second fundraising round

The Cinema Capital Venture Fund reportedly hopes to raise the sum from overseas investors and will announce its two maiden investments in February.

The Cinema Capital Venture Fund intends to raise $50 million from overseas investors in its second round of fundraising, which started early this month, according to online Indian television and media service Indiantelevision.com.

Since then the fund has raised INR250 million ($5.1 million) and plans to announce its first two investments, both in film content production companies, in February, said the report, quoting Samir Gupta, senior partner at the fund.

The Securities and Exchange Board of India-registered fund, which is targeting INR5 billion with a greenshoe option – which allows the firm to allocate extra shares in the event of over-subscription – of INR2.5 billion, raised INR1.75 billion last year.

Launched by a group of media professionals, the Cinema Capital Venture Fund will reportedly invest between INR300 million and INR500 milion for minority positions in film content companies involved in producing Hindi and South Indian language films.

Just last week, another Indian film fund, the INR2 billion Vistaar Religare Film Fund invested INR50 million for a minority stake in the movie Victory, in its maiden deal. The investment will pay for Victory’s print and advertising campaigns.