Zomato Backed AdOnMo Mops Up INR 58 Cr Funding For Business Expansion

Adtech startup AdOnMo has secured INR 58.21 Cr ($6.99 Mn) as a part of its Series B1 funding round.

AdOnMo board has passed a special resolution to issue 36 equity and 4,156 CCPS at an issue price of INR 1,38,850 each to raise INR 58.21 Cr, as per its regulatory filing with the RoC.

Ravindranath Kancherla, founder and chairman of Global Hospitals Group, and his son Kancherla Pruthvinath infused INR 16.6 Cr. Besides, Qatar Insurance Company and ZNL Growth (Z Nation Lab) pumped in INR 8 Cr and INR 1.80 Cr, respectively.

The startup will use the fresh capital for business expansion and to meet working capital requirements.

This development was first reported by Entrackr.

AdOnMo, founded in 2016 by Sandeep Bommireddi and Sravanth Gajula, provides outdoor advertising solutions. The startup enables targeted, real-time advertisements on cloud-connected digital screens.

In 2022, foodtech giant Zomato invested INR 112.20 Cr (around $15 Mn) in AdOnMo for a 19.8% stake. Back then, Zomato said that AdOnMo platform would help its food ordering and delivery business ‘leverage new digital avenues for customer acquisition’.

In 2020, Adonmo raised $3 Mn in its pre-series funding round from Alibaba’s holding firm Ant Financial-run Bace Capital and others like Astarc Ventures, Mumbai Angel Network.

AdOnMo’s revenue from operations surged 4X to INR 75 Cr in FY23. However, the company reported INR 38 Cr in the same period.

India’s Out-of-Home (OOH) advertising market is rapidly expanding, driven by innovative digital platforms and strategic location-based campaigns. As per Statista report, ad spending within this sector in India will increase to $589.7 Mn in 2024. The forecasted average ad spending per capita for the Out-of-Home Advertising market in India in 2024 stands at $0.41.