Mobile Entertainment Startup ReelSaga Bags $2.1 Mn

Mumbai-based mobile entertainment startup ReelSaga has raised $2.1 Mn (around INR 17.9 Cr) in a seed funding round led by Picus Capital, along with participation from ITI Growth Opportunities Fund, Nazara Technologies, 8i Ventures, Waveform Ventures, Warmup Ventures, Bombay54, Bharat Founders Fund and others. 

The company plans to deploy the fresh capital to fuel app development and produce high-quality, localised content. 

It aims to define a new category of mobile-native entertainment across India, Southeast Asia and the Middle East.

Founded in 2024 by serial entrepreneurs Shubh Bansal, Shanu Vivek, and Ritesh Pandey, ReelSaga is building India’s first dedicated microdrama platform for mobile-first audiences. 

“More and more users are turning to short-form video for entertainment. It’s quick, emotionally resonant, and binge-worthy, drama doesn’t need to be 40 minutes long to move you,”  Bansal said. 

All the three founders were previously cofounders at Truebil, a used car marketplace acquired by Spinny. The team is now focusing on building a platform for mobile-first fiction with episodes spanning 1-2 minutes across 50-100 episode arcs.

In March this year, Nazara Technologies received board approval to invest around INR 2.17 Cr in ReelSaga through subscription to 593 equity shares, representing 3.57% of the equity share capital of the company.

Platforms like Chingari, InMobi’s Roposo, Josh, and Moj have been experimenting with alternative revenue streams beyond traditional advertising, such as integrating e-commerce features, introducing virtual gifting, and leveraging regional content to enhance user engagement.

For instance, InMobi’s Roposo pivoted to social commerce last year, moving away from a creator-led model to one where any user can sell or resell products with the help of GenAI tools.

Similarly, Chingari’s parent Tech4Billion Media diversified its offerings by launching AstroLive in December 2024, a spiritual tech platform that enables users to connect with astrologers for live consultations.

The company cited the need to create alternate revenue streams as “India’s short-video boom continues to fizzle out.” AstroLive claimed to have accumulated more than 1 Lakh paid users within three months of commencing operations.

Meanwhile, larger platforms like ShareChat and Moj, with their combined user base of over 325 Mn, have been forming strategic partnerships to enhance their content offerings. In March 2024, they partnered with JioCinema to showcase sports content, including IPL, WPL, and other major sporting events.

According to a Redseer report, India’s short-form video market is projected to reach 650 million active users by 2025, with ad spending expected to grow by 30-35% this year alone. 

While YouTube Shorts and Instagram Reels currently control 85-90% of India’s short-video advertising market, Indian platforms generated $90-100 million in ad revenue in FY24, a figure projected to surge to $3-6 billion by 2030.