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Siddharth Roy Kapur's RKF aims to raise around $50 million by offering up to a 50 per cent stake in the company.
Mumbai-based Roy Kapur Films (RKF), founded by Siddharth Roy Kapur, the former managing director of Walt Disney India, is seeking equity investment to scale its operations, according to merchant bankers familiar with the matter.
Sources indicate that RKF aims to raise around $50 million by offering up to a 50 per cent stake in the company. Kapur, they said, has received commitments from some private equity funds to invest up to $20 million.
A query to Kapur in this connection did not elicit a response. The film production house is said to be courting both domestic media and entertainment-focused private equity funds, as well as global players.
RKF's fundraising efforts align with a recent trend among Indian production companies seeking external capital to expand, as escalating film budgets and prohibitive short-term financing costs squeeze profitability.
Last month, Karan Johar's Dharma Productions sold a 50 per cent stake for Rs 1,000 crore (Rs 10 billion) to Serene Productions headed by Adar Poonawalla, CEO, Serum Institute of India.
Similarly, Universal Studios is said to be in talks with Excel Entertainment, founded by Farhan Akhtar and Ritesh Sidhwani, which is also exploring the sale of up to a 50 per cent stake.
Since its inception in 2017, RKF has released seven films and has upcoming projects including Deva starring Shahid Kapoor and Woh Ladki Hai Kahan, featuring Taapsee Pannu and Pratik Gandhi.
The company has also ventured into Web series production for platforms like Amazon Prime, Netflix and SonyLIV, with titles such as Matka King.
Kapur is no stranger to blockbuster film-making. During his tenure at Disney India, he played an instrumental role in production of hits like the Aamir Khan-starrer Dangal and Rang De Basanti, Ranbir Kapoor's Barfi, and the Anurag Kashyap-directed Dev D.
RKF remains a relative newcomer compared to major production houses like Excel Entertainment, Red Chillies Entertainment, Yash Raj Films and T-Series but the Indian content landscape is attracting significant investor interest.
The domestic film industry is estimated at Rs 20,000 crore (Rs 200 billion), while the streaming sector has surpassed Rs 70,000 crore (Rs 700 billion) in annual revenue, making content the prized asset.
Analysts note that conglomerates such as Reliance, the Adani group and the RPG Group's Saregama are also exploring investment opportunities in this burgeoning sector.
However, not all is rosy for Bollywood. The Hindi film industry is grappling with uneven box office performance, as even star-studded, big-budget productions falter.
Dharma Productions recently suffered a setback when Jigra, starring Alia Bhatt, reportedly failed to recover its Rs 90 crore (Rs 900 million) production cost in the domestic market.
