Paytunes raises $500,000 from angel groups
Mumbai: Real Time Networks Pvt. Ltd, the company that operates as Paytunes, has raised $500,000 in pre-series A funding from Indian Angel Network (IAN) and CIO Angel Network. It raised $100,000 from CIO Angel Network in September last year. Vishal Khare and Rajeev Arora have led this round of investment on behalf of IAN and will join the company board.
Founded by Divya Pratap Singh and Rakesh Sehgal in 2015, Paytunes plans to utilize the investment for expanding the team and hiring more talent on the sales side and for marketing initiatives.
“Currently most of the branding spend (~80% of Rs.50,000 crore market) goes to traditional media such as TV, radio and print. Paytunes is building an alternative medium in the branding domain… While most of the consumption of these mediums is offline, all of these are trying to move to mobile to improve the user engagement and user mindspace. It presents a great opportunity for brands to reach mobile consumers extensively,” said Khare.
Paytunes replaces mobile ringtones with ad jingles from advertisers and at the end of a call, displays a visual for the ad. For every ad played, users earns points which they can later redeem in terms of mobile recharges and bill payments.
As per a recent e-Marketer report, digital advertising spend in India is $1 billion, out of which mobile advertising is $0.18 billion. By 2019, the digital ad spend is expected to grow to $2.17 billion and mobile advertising to $1.23 billion.