FidelisWorld takes the field with TechFront
The Indian Premier League (IPL) will literally enter new territory next month when the seventh season of the cricket tournament starts play in the United Arab Emirates – the first time the country has played host to such an event. The stadium chosen to host the first match is expected to be filled to capacity and those at the back unable to see the action close up will rely on the venue’s illuminated television screens and scoreboards for a clear view.
This is the vital service that Technology Frontiers India (TechFront) has been providing to the IPL since 2009, and it is one of the reasons FidelisWorld Asset Management decided to buy a significant minority stake in the business for around $19.5 million this month. It is the Mauritius-based GP's first investment.
Headquartered in Chennai, TechFront's business covers a broad range of arena management technology, comprising digital display systems and in-stadia lighting for sports events and concerts. It also develops smart phone applications for these events. The company previously received $10 million in funding from Avigo Capital in 2010.
According to Anand Krishnan, who helped set up FidelisWorld in 2011, TechFront distinguishes itself from competitors by integrating its display systems with fan applications.
"TechFront puts everything under one roof," Krishnan tells AVCJ. "It is all about trying to get the best of the sporting field to the fan, creating incremental revenue for rights holders, and a maximum return on investment for the sponsors, whether it is through digital systems, software or fan applications."
The investment was made via FidelisWorld's FW Sports Investment Fund, which reached a first close of $100 million last October and has an overall target of $200 million. TechFront is one of many opportunities to arise from the emergence of professional sporting leagues in India. The 2007 debut of football's I-League was followed by the IPL in 2008 and more recently the Elite Football League of India.
"With the IPL and various private leagues emerging, incomes rising, increased leisure spending, and health consciousness emerging, I think the time is right to create an ecosystem for sports - there is a lot of value to be created," says Krishnan. "We are not interested in investing in sport teams and leagues that are dependent on sponsorship revenue; we are interested in the businesses that support the leagues, teams and consumers in this part of the world."
TechFront already gets more than 60% of its revenues from overseas markets in Asia and Europe. FidelisWorld plans to help the company further expand this global footprint.
"The company has a presence in Asia and Europe - in particular the UK - but it has not done much in South America, Africa, and the US. We have made forays in these regions with our connections so the next thing is to pull together a strategy," Kirshnan adds.
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