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Smaaash Essentials

Discover and get a complete analysis on Smaaash Entertainment Private Limited - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get the latest updates on Smaaash Entertainment Upcoming IPO.

ISIN

INE433N01018

Face Value

₹10.00

Total Share

19,02,19,253

Total Income

₹288.54 Cr

Profit After Tax

-₹105.47 Cr

EPS

-₹4.45

P/E

-7.19

P/B

3.58

Market Capitalisation

₹608.70 Cr

Enterprise Value

₹999.57 Cr

Book Value

₹8.93

Intrinsic Value

₹43.00

Earnings Yield

-13.91 %

Sector

Consumer Discretionary

Sub-sector

Theme Parks and Gaming

Smaaash Growth

Compounded Sales Growth

33.10%

1 Year
72.09%

3 Year
63.87%

4 Year

Pro Only

Compounded Profit Growth

-144.17%

1 Year
-58.73%

3 Year
-54.04%

4 Year

Pro Only

Return On Equity

-62.06%

2019
-29.17%

2018
-34.10%

2016

Pro Only

About Smaaash

Smaaash operates as an entertainment centres in Mumbai, Gurugram, Hyderabad, Bengaluru, Noida, and Ludhiana, India. The company provides sports simulation technology based on cricket, football, racing, and recreational activities; as well as dining for men, women, and children.
Smaaash is renowned in the field of sports simulation technology and proprietary gamification technologies such as a unique twilight bowling zone, motor racing and bike racing simulators and the go-karting tracks which is very popular among youths and corporates between the age of 13-50.
Being a virtual reality led entertainment gaming centre - vastly credited to its in-house research and production capabilities, head mounted displays are used to produce games such as Walk the Plank, Finger Coaster, Cockpit 360 etc.
SMAAASH also touted as one of India's entertainment powerhouse in foreign shores with its Mall of America launch
Smaaash achieves Rs. 300 Cr. sales mark about seven years after it opened its first outlet. With 41 outlets as of December 2019, Smaaash's per store gross sales reached at Rs. 350-600 per Sq.ft. on an average, which was at par with significantly higher than other popular restaurant & entertainment startup which entered during the same time as per the the size and format of the store.
Before the covid 19-led disruption, it operated 35 zones, but had to shut a few of entertainment zones permanently and is currently has only 21 outlets. As of FY22, the company has started to resume its operations. The company is also planning to launch from its current 21 stores to 50 centres across metro and smaller cities.
The company has come up with the campaign of Smaaash 2.0 to revolutionized its operations, as a part of this campaign, Smaaash will step away from its traditional kids oriented offering to a business that caters to the needs of young adults and working professionals.
Smaaash Entertainment Private Limited is a Private incorporated on 30 November 2009. It is classified as Non-govt company and is registered at Registrar of Companies, Mumbai.

Smaaash IPO Details

Smaaash Entertainment Pvt. Ltd. earlier planned to launch its initial public offering (IPO) to raise 500 Cr. from the market. It was likely to be made public in the month of December, 2021, but for undisclosed reasons, the company has postponed their plans.

Smaaash Merger & Acquisition

Acquisition

On May 3, 2018, Smaaash has entered into a share subscription agreement with a new investor I-AM Capital Acquisition Company for the private placement of 76,641,157 equity shares for gross proceeds of Rs. 348 Cr. On June 22, 2018, the company has issued 89,583,215 shares in the transaction. The investor will acquire 27.53% in the company.
On March 23, 2018, Smaaash Entertainment Pvt Ltd. announced that it has issued 10,605,350 preference shares at a par value of Rs. 10 at Rs. 37.92 for the gross proceeds of Rs. 40,21,54,872. The transaction included participations from Ravi Modi of Manyavar, Lakshmi Narayanan, Vijaylaxmi Poddar of Balkrishna Industries and other 23 HNIs to acquire minority stake in the company.
On 17 December, 2017, Smaaash has received Rs. 90 Cr., from high net worth individuals of Avendus Wealth Management Pvt. Ltd. The deal was made to take minority stake in the company. Smaaash intended to use the funds to accelerate growth plans, to provide world-class sports and immersive experiences.
On November 27, 2017, Smaaash Entertainment Pvt Ltd. announced that it has received Rs. 25 Cr. in its round of funding led by new investor Sixth Sense Ventures. As part of the transaction, the investor has invested for a minority stake in the company for Rs. 24,87,96,300. Nikhil Vora from Sixth Sense Ventures also joined the company’s board of directors. The transaction also included participation from several high-net-worth individuals for Rs. 42,86,25,750. The company used the proceeds for furthering its physical presence in both domestic and international geographies.
On May 13, 2014, Smaaash Entertainment Pvt Ltd announced that it has received about Rs. 100 Cr. in first round of funding from new investor FW Sports Investment Fund L.P., a fund managed by FW Asset Management. Pursuant to the transaction, the investor acquired 39% stake in the company. Smaaash Entertainment Pvt Ltd used the proceeds for the company’s expansion plan.

Smaaash Subsidiaries

Adrenaline Foods Private Limited
Smaaash Innovations Private Limited
Smaaash Entertainment USA Limited
Smaaash Village Private Limited
Smaaash Leisure Limited (formerly known as BluO Entertainment Limited)

Smaaash Business Model

Adrenaline Foods Private Limited, incorporated on November 26, 2014. The company is engaged in the business of operating quick service restaurants. It offers Indian and International Cuisines.
Smaaash Innovations Private Limited assists in setting up and designing and developing equipment/technology related to games and entertainment centre.
Smaaash Entertainment USA Limited is engaged in the business of operating entertainment centres.
Smaaash Village Private Limited is engaged in the business of consulting in setting up different forms of family entertainment centres and restaurants.
Smaaash Leisure Limited (formerly known as PVR BluO Entertainment Ltd) was acquired on September 01, 2017. The company is engaged in the business of operating entertainment centres. It presents an unmatched range of games that offer a superlative virtual-reality experience and combines the best of sports, music and dining into a highly immersive, interactive, innovative and involved entertainment experience.

Smaaash Revenue Segmentation

Other Income
Other Operating Revenue

Revenue from sale of in-house developed games
Revenue from operating entertainment centers

Smaaash Product & Services

Events and Parties
Games
Food and Beverages

Smaaash Assets

Total assets of the company as on 31 March, 2019

Particulars	(Amount in Rs. Lakhs)
Property and equipment	19802.70
Furniture and fixtures	981.12
Motor Vehicle	10.48
Office Equipment	123.89
Computer Equipment	90.49
Leasehold improvement	11309.58
Other property, plant and equipment	1402.65
Brands and trademark	814.11
Brands	772.45
Trademarks	41.66
Computer software	101.60
Copyright, patent and operating rights	221.29
Other intangible assets	3424.86

Smaaash Industry Overview

Industry Statistics

Small amusement park or entertainment zone, also known as family entertainment center (FEC), serves local communities in both major and small cities. In comparison to a regular amusement park, FECs are designed to keep the entire family entertained at a substantially lower cost per person. Arcades, gaming consoles, video games, soft play areas, indoor playground systems and virtual & augmented reality activities are all available.
With turnover of USD1.2 billion, India accounts for 0.6% of the Asia Pacific total in 2020. India’s sporting and recreational services turnover declined by 14.1% in 2020, making India the 11th largest country in the region. The industry’s turnover is forecast to grow at a CAGR of 6.2% over 2020-2025 and fully recover from the COVID-19 pandemic in 2023.
Favorable youth demographics and continuous launch of new FECs supporting family activities, F&B integration, and participatory play boost the growth of the global family/indoor entertainment centres market. In addition, increase in number of malls positively impacts the growth of the market.
With the increase in work pressure, not many people have the time to spend an entire day at theme parks and resorts. Family Entertainment Centers like Smaaash have provided them much needed entertainment avenues at convenient locations close to their homes. Increasing disposable incomes, coupled with limited leisure time, has led to the exponential growth of FECs.
Bandai Namco, a leader in indoor amusement park and family entertainment centres (FEC), has launched the biggest indoor amusement park in Mumbai. The major players operating in global family/indoor entertainment centre are Dave & Buster's, CEC Entertainment Inc, Cinergy Entertainment, KidZania, Scene 75 entertainment centres, The Walt Disney Company, Lucky Strike Entertainment, Funcity, Smaaash Entertainment Pvt. Ltd. and Lego Land Discovery Centre and others.

Future Prospects

The industry’s turnover is forecast to grow at a CAGR of 6.2% over 2020-2025 and fully recover from the COVID-19 pandemic in 2023.
Key drivers enabling the growth in the industry are rise in the number of malls and increase in the youth population.
There is a rise in the number of malls across India, enabling the growth of FECs. Mall developers are increasingly including FECs in their plans since they help in increasing and retaining footfalls at malls and increase the number of hours consumers spend in them. New developers have begun to plan bigger spaces in their malls and consider FECs as a USP for them.
Family / indoor entertainment facilities offer loyalty programs, which is an important market driver. The program is supported by parameters like visit points, reward points, cards, memberships, etc. These loyalty programs are used to retain and attract new customers with advertising aid in family entertainment centres.

Smaaash Awards & Achievements

Smaaash, has been conferred with the esteemed ‘North India Best Employer Brand’ Award 2019.
Smaaash was bestowed with prestigious Best Sports Bar in India Award at the 3rd Edition of the India Nightlife Convention and Awards (INCA) held on 15th and 16th September 2018 at Shangri-La’s Eros, Janpath, New Delhi.

Smaaash Strengths

The company has a strong presence in tier-1 cities in India as well as abroad, which enables the company to realise higher revenue. The company has 21 entertainment centres at present, which is far greater than its peers.
Smaaash is equipped with hosting of events, parties and gaming, which makes it unique and first of its kind as a family entertainment centre in India.
The company has Sachin Tendulkar as its brand ambassador.
Technology the company uses such as sports simulation technology and proprietary gamification technologies to make the virtual reality gaming experience more attractive for youths is what makes the company stand apart in the industry.

Smaaash Shortcomings

The company lacks the ability to manage its expenses and has registered losses since incorporation despite improving revenue from operations.
The company has a huge debt amount in its books, which far exceeds the revenue generated by the company in FY19.
Management was not able to diligently allocate funds which they had raised for their expansion, but rather those funds were used to keep the company afloat.
The indoor family entertainment centre industry is increasing rapidly, and Smaaash is unable to keep up with the pace. The company must analyse the trends and culture to keep increasing its market share in the industry.

Smaaash Opportunities

Partnerships with local players can help Smaaash Entertainment expand its reach in international markets. Smaaash Entertainment can bring global procedures and execution knowledge to the table, while the local companies have local expertise.
Huge entry costs makes it hard for unorganised player to take entry in the market, which could benefit Smaaash to capture the market, followed by latest trends in the industry.
Smaaash also operates in the U.S.A., which provides know-how of the U.S.A. competitive market for Smaaash, which will add benefit to foray into overseas markets.

Smaaash Threats

As the industry's new product launch cycles shorten, players like Smaaash Entertainment are facing increased competition. Smaaash Entertainment can't adapt quickly enough to the needs of specific segments that disruptors are focusing on because of its enormous customer base.
Even though Smaaash is a market leader in providing new technology to the table, it still has to challenge new product innovations done internationally, which when brought in India could take away brand loyalty among consumers.