AdOnMo, an ad-tech firm specializing in targeted digital advertising on outdoor screens, has raised Rs 58.21 crore (approximately $7 million) in its Series B1 funding round. This significant investment marks a pivotal moment for the Hyderabad-based company following its initial Series A round, primarily backed by Zomato last year.
Diverse investors contributed to AdOnMo’s growth trajectory in the recent funding round. Healthcare veteran Ravindranath Kancherla and his son Kancherla Pruthvinath injected Rs 16.6 crore, while Qatar Insurance Company and ZNL Growth (Z Nation Lab) added Rs 8 crore and Rs 1.80 crore, respectively. Additionally, 36 individual investors, including notable names like Manish Kailash Chhabra, Vindhya Guduru, Vikram Malhotra, Usha Reddy Chigarapalli, and Desireddy Srinivasa Reddy, participated in the Series B round.
As outlined in regulatory filings, the infusion of capital will fuel AdOnMo’s expansion initiatives and address its working capital requirements. Furthermore, the company has secured Rs 20 crore in debt from Northern Arc and Alteria Capital during the current fiscal year, bolstering its financial position for future endeavours.
Established in 2016 by Sandeep Bommireddi and Sravanth Gajula, AdOnMo has emerged as a prominent player in the ad-tech landscape. It offers targeted digital advertising solutions for outdoor screens in residential and corporate parks across 21 cities.
With this latest round of funding, AdOnMo’s total investment tally reaches approximately $25 million, including the $15 million injection led by Zomato in the previous year. Before this round, Zomato held the most significant external stake in AdOnMo at 17.49%, followed by BAce Capital and Astarc Ventures.
Despite the competitive market landscape, AdOnMo witnessed remarkable growth in the last fiscal year, with operational revenue surging four-fold to Rs 75 crore in FY23. However, the company reported losses amounting to Rs 38 crore during the same period, signalling ongoing investments in scaling operations and technology enhancements.
As AdOnMo continues to innovate and expand its reach, fueled by robust investor support, it remains poised to further disrupt the digital advertising space and capitalize on emerging market opportunities.
