Two investment funds, Filmoney Global and CineNow, are pioneering the use of special purpose vehicles (SPVs) to transform the Indian film industry into a viable asset class, similar to the valuation seen in franchises like the Indian Premier League (IPL). Filmoney Global is launching a series of 10 SPVs, each aimed at investing between £5 million to £10 million in youth-oriented films, targeting varied genres to optimize risk and return. Their approach emphasizes backing theatrical-first films that do not require marquee stars, with operations centered in Dubai, New York, and London.
CineNow, a $150 million fund registered in the British Virgin Islands, positions film intellectual property (IP) as an alternative investment avenue and plans to fund over 30 films within six years, creating budgets that vary widely. The firm recently appointed Siddharth Roy Kapur, a notable industry figure, as a principal advisor, enhancing its strategic credentials.
Industry executives highlight the pressing need for investment in a traditionally undercapitalized sector. Vikram Malhotra, founder and CEO of Abundantia Entertainment, notes that the financing landscape has been fragmented, often relying on external entities. With several deals raising significant funds in recent years, including a ₹1,000 crore infusion into Dharma Productions, there is a renewed optimism for capital influx.
The adoption of SPVs reflects a shift in the Indian film industry towards professionalized finance models historically prevalent in Hollywood. Both Filmoney Global and CineNow are positioned to assist producers in realizing greater financial security while evolving the film investment landscape by introducing tokenized investments that promise substantial returns.
Why this story matters:
- It highlights a significant shift in financing mechanisms for film production in India, potentially stabilizing an underfunded industry.
Key takeaway:
- Investment funds are introducing structured financial frameworks to Indian cinema, creating new opportunities and reducing risk for producers.
Opposing viewpoint:
- Some industry insiders express skepticism about the long-term sustainability of these funds and whether they can navigate the subjective nature of film success.
