In a significant move, Chinese e-commerce group Alibaba has decided to invest over Rs 120 crore to acquire a substantial majority stake in city-based Orbgen Technologies Private Limited, that runs the online-ticketing website TicketNew.
TicketNew, founded in 2007 by Ramkumar Nammalvar, is an online ticket-booking platform for movies, theatres, events, stores, sports, parties, and other entertainment activities.
The acquisition was done through Alibaba Pictures Group Limited, the company’s flagship entertainment arm. It signals its major buy in the burgeoning internet ticketing industry outside China.
The entry of Alibaba was facilitated through a combination of stake dilution by promoters led by Mr. Nammalvar and others, and issue of fresh equity at an undisclosed premium.
According to Mr. Nammalvar, Orbgen Technologies notched a topline of Rs. 18 crore in 2015-16 and has been showing profits for the last five years. After the acquisition, Alibaba will have four nominees on the board of Orbgen Technologies. The promoters will have two representatives.