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Allu Aravind done with Aha?

Tuesday, February 27, 2024 • Tamil Comments
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Driven by the resounding success of South Indian films in recent years, Aha, the regional streaming platform backed by Tollywood's Icon Star Allu Arjun's father Allu Aravind, is embarking on a strategic expansion plan. The platform aims to bring on board a strategic investor to bolster its subscriber base and diversify its content offerings across multiple South Indian languages.

To facilitate this growth trajectory, Aha has appointed KPMG Corporate Finance as its strategic advisor. This move signals the platform's commitment to achieving its ambitious expansion goals.

Aha, a joint venture between Ramu Rao of the TV9 and My Home Group and Allu Aravind of Geetha Arts, has witnessed remarkable growth since its launch in 2020. The platform has amassed over 7 million monthly active users, captivated by its diverse content library of over 900 movies, series, reality shows, and original programming.

A spokesperson for Aha confirmed the appointment of KPMG, highlighting the company's focus on augmenting its growth plans. The platform is actively exploring strategic partnerships, including inorganic growth opportunities through acquisitions.

Sources familiar with the matter indicate that Aha is seeking a valuation of around Rs 2,000 crore. This strategic move underscores the platform's confidence in its growth potential and its commitment to delivering premium entertainment to South Indian audiences.

Aha's success stems from its differentiated content strategy, which caters to the unique preferences of Telugu and Tamil viewers. The platform's "local" positioning has resonated with audiences, establishing it as the largest regional OTT player in South India.

To further accelerate its growth, Aha plans to deepen its penetration in tier 2 and 3 cities, rural markets, and international territories. Additionally, the platform aims to expand its reach by introducing content in additional regional languages, such as Malayalam and Kannada.

South India holds a significant share of the Indian media and entertainment market, contributing approximately 35 percent of the total revenue. The region's streaming and digital media segment is poised for rapid growth, with a projected CAGR of 25 percent, making it one of the fastest-growing sub-segments in India's M&E industry.

Aha's financial performance reflects its impressive growth trajectory. For the fiscal year 2023, the platform reported a revenue of Rs 122.08 crore, a significant 61 percent increase over the previous year's revenue of Rs 76.02 crore. However, the company's losses also increased by 31 percent to Rs 120.94 crore.

With its strategic expansion plans and the appointment of KPMG as its strategic advisor, Aha is poised to capitalize on the burgeoning South Indian streaming market. The platform's focus on local content, coupled with its plans to expand its reach and diversify its offerings, positions it for continued growth and success.

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