UFO Moviez raises US$ 22mn from 3i Group

UFO Moviez, the world's largest digital cinema chain has raised US$22-million of equity financing from 3i Group, a world leader in private equity and venture capital. 3i Group has subscribed to cumulative convertible preference shares issued by UFO Moviez and also has the option to invest an additional US$ 3 million at a later date. UFO Moviez is promoted by Apollo International Limited, a part of ‘Group Apollo’ led by Onkar S. Kanwar. 

The deal comes at an opportune time to fund UFO Moviez' aggressive expansion plans. UFO Moviez, the pioneers in the cutting edge and fast growing digital cinema market, will utilise this capital to invest in the necessary hardware to expand it footprint in India and abroad. Immediate expansion plans include Middle East, South East Asia and Africa amongst others, ready to roll out in the month of January 2007. UFO Moviez is currently present in 600 theatres across India and plans to create a chain of 3000 digital cinema houses worldwide by 2008. 

“This investment is a validation of UFO Moviez’ strategy and market positioning,” explained Mr. Onkar S Kanwar, Chairman, UFO Moviez. “The digital media arena is truly exhilarating; both in terms of revenue and technological opportunities and we are delighted to have such forward-looking investors who join us in our mission to vastly improve the cinema distribution and viewing experience as well as enhance our ability to address this fast-growing market. The involvement of 3i will only help us achieve results which will not only be path breaking but also, historic.” 

Mr. Chris Rowland, Managing Partner – Asia and Group Markets, 3i says “We are very excited to invest in the largest digital cinema chain in the world. We were very impressed with the speed with which UFO Moviez has been able to roll out successfully to over 600 screens in a short span of little over 12 months. We believe the value proposition of UFO Moviez of enhancing returns for exhibitors and distributors, offering advertisers a unique one window platform and addressing the issue of piracy to be a winner. The professional management team led by Sanjay Gaikwad backed by ‘Group Apollo’ is an ideal combination.” 

Contd on page 2....