Jupiter Capital-Backed Asianxt Eyes $10-15 Mn Funding To Enter Social Media Space

News and entertainment mediatech startup Asianxt Digital Technologies which counts Jupiter Capital as its investor is reportedly looking to raise growth capital between $10 and $15 Mn to make its foray into the social media space with a short-format video app shortly.

Asianxt’s forthcoming product is set to be a short-format video app for social media, distinguished by its use of AI to effortlessly generate content in various languages with a simple push of a button.

“We are looking to raise somewhere in the range of $10 to 15 Mn from like-minded investors. It is almost towards scaling up our direct-to-consumer offering, which will be launched within a month,” Asianxt CEO Neeraj Kohli told Mint. 

Kohli also added that the company had already completed a product thesis, with the blueprint in the initial stage. It is currently conducting the proof of concept (POC) and as it proceeds to the market, the entirety of the investment will be directed towards the product launch and expansion.

Speaking about the upcoming launch, Kohli mentioned that creators can develop content in their native language, and the platform will facilitate its publication in multiple languages. 

“There is enough space in the market to accommodate other products since AI-enabled content creation lets everyone define their journey. If we speak about the number of content creators in India, it is highly underpenetrated. A large part of that growth is going to come from regional pockets. We understand regional clusters and segments far better than anyone else,” he said

Jupiter Entertainment Ventures, a subsidiary of Jupiter Capital Ventures, holds a majority stake of over 95% in Asianxt. 

Kohli said that the company plans to dilute a minority stake, given sustained revenue growth during Covid. He noted that the company’s EBITDA margins consistently improved and are expected to remain around 15%. The digital business experienced a 40% CAGR post the pandemic period, showcasing EBITDA profitability.

“We ended the last financial year with a topline of INR 336 Cr and are on track to close the current year with over INR 400 Cr,” he added.

As of November 2023, homegrown short-form video (SFV) platforms in India have amassed a user base exceeding 250 Mn, with approximately 65% originating from tier-II cities and beyond, according to Redseer Strategy Consultants.

Despite this, India’s prominent short video platforms have been struggling with several factors. Multiple short video platforms have shuttered operations recently, including Bigo Live, WeChat, Helo, Likee, the Xiaomi-owned Zili and Tiki.

As reported by Inc42, several Indian short video platforms faced challenges three years post-TikTok’s exit, experiencing declines in Daily Active Users (DAU) and download momentum. Instagram and YouTube responded by investing heavily in the short video space, attracting major creators and a vast user base. The competition intensified as content on these platforms became more localised, featuring regional language influencers, posing a threat to apps like Moj, Roposo, and Josh. 

Consequently, Indian short video platforms are grappling with increased expenses for user acquisition, content creation, and influencer incentives. Despite the initial advantage after TikTok’s ban, platforms like Josh, TakaTak, and Moj are struggling, with ShareChat’s Moj facing an uncertain future, potentially impacting ShareChat as well.