Smaaash Entertainment, the sports-based entertainment company co-owned by Shripal Morakhia and former cricketer Sachin Tendulkar, has acquired 100% stake in a cash deal in SVM Bowling and Gaming, a popular bowling and entertainment format operated by SVM (Sri Venkateshwara Multiplexes).
The acquisition price has not been disclosed. This is the second acquisition by the company in a month. On August 8, it had acquired PVRowned bluO Entertainment for Rs 86 crore.
Fractal Capital acted as the sole advisor to Smaaash for the PVR bluO and SVM deals. “We are ready to invest Rs 120 crore between now and March next year on changing the product mix in BluO, this (new) acquisition and opening new properties in 10 new cities, including Indore, Raipur and Siliguri. Some of the properties will be launched within this calendar year,” Morakhia said.
The acquisition will add 13 centres to Smaaash’s blueprint in India, expanding its presence to 7,00,000 square feet — the largest for any player in this space in the country. Of the 13, SVM owns eight (four in Hyderabad and one each in Madurai, Mysore, Mangalore and Vijayawada), while five units (four in Hyderabad and one in Pune) are owned by franchises. Morakhia said Smaaash will try to buy out the properties from the franchise owners as well. With the SVM deal, Smaaash has 26 centres in 13 cities in India and one in the Mall Of America – the largest mall in the US.
“We believe that this business is still in a very nascent stage,” Morakhia said. “Our endeavour is to provide aspirational active experience and sports throughout India. And with the purchasing power of Indians increasing substantially, it doesn’t matter if it’s a big metropolis or a small town,” he said.
“SVM’s strong market relationships and customer-focused approach present a fantastic geographic, strategic and cultural fit for Smaaash. With this deal, our footprint is currently at 700,000 square feet and we aim to be at a million square feet by the end of the year,” he said.
