Outdoor Advertising Business Seeking Loan in Pune, India

- The business provides e-advertising services for its clientele. We currently own 50 screens (LCD) that have been installed at various retail stores across Maharashtra.
- We pay monthly rent to the shop owners who give us the space to install our screens. Every store that is equipped with our digital screens is referred as a digital outlet by the business. The shop owner must provide us with INR 20,000 as a security deposit for the screen and has the responsibility to keep the screen switched on for 12 hours every day. Length of each contract is 18 months and we have over 35 such contracts currently. Currently, we have over 40 such digital outlets in Maharashtra.
- To boost our client base, we have distributors as per cities, areas and regions. To become a distributor, the individual pays us a one time association fee ranging from INR 1 lakh to 3.75 lakh depending on the type of location (metro city or the size of location). The distributor caters to all the technical and maintenance issues for all the digital outlets in their respective areas for which we pay them INR 500 monthly. In addition, we pay our distributors 10 percent commission on every new client (s) they acquire. Currently, we have 5 distributors in Maharashtra with each contract lasting 3 years.
- Each screen displays a single advertisement for 45 seconds and displays over 1,000 such advertisements per day. Advertisements are changed, controlled and rotated on every screen through our proprietary cloud software which is done remotely.
- Our basic packages are tailor made as per our client's needs like: number of advertisements per day, number of screens, locations of the screens and number of days they wish to advertise for. Basic packages require a one time payment at initiation and can cost anywhere between INR 10,000 to INR 50,000. Corporate packages for companies follow a monthly payment structure. 60 percent of our revenue is through basic packages. We currently have 4 corporate clients and 5 clients with basic packages.
- Through direct marketing, good consumer reviews & increased distributor network, we increased our revenue this year.
- To meet increased demand and expand to other locations, we will not only buy more screens but also invest in tablets which will be placed in cabs and autos to make them our digital outlets. This is aimed to broaden our advertising network and increase our revenue to payback our investors within the stipulated time frame. We are currently operating near our maximum capacity and have multiple contracts which we can only cater when we expand the business.