Mobile advertisement platform PayTunes has raised an undisclosed amount of funding from CIO Angel Network (CAN). Angel investors Sanjay Mehta and Anoop Mathur have led the round with other members from CAN.
Raised funding will be used for product development and customer acquisition, as reported by TechCircle.
Founded in 2015 by Divya Pratap Singh, Rakesh Sehgal and Gaurav Tiwari, the startup helps brands to reach their mobile consumers through audio ads. It replaces the ringtones of users’ mobiles with ad jingles. In return, it allots reward points to users on every incoming call. The points can be redeemed later in the form of free recharges and bill payments.
The service is available on Android as of now, which has hit more than 10,000 users. The company aims to reach a user base of one lakh consumers by the end of the year.
Sanjay Mehta, angel investor, member of CAN, talking about the funding said, “Mobile advertising is currently the hottest area in the advertising industry and brands are looking at newer innovative ways to reach the mobiles of their consumers. Most of the digital advertising avenues have for long focused only on in-app and website banner ads. This audio-based ad delivery model is disruptive and holds global potential.”
Although Adtech has many players, this is a new concept that has surfaced in this sector. InMobi is a major name in this space which recently raised an investment of $100 million in new debt from a group of lenders by US-based Tennenbaum Capital Partners.
With the rise in smartphone usage among people, and internet penetration in the country, mobile advertising holds a huge potential. As per a US-based research firm, India will exceed 200 million smartphone users, topping the US as the world’s second largest smartphone market by 2016 due to increasing penetration of affordable smart mobile devices in the country. The number of internet users in rural areas will touch 210 million by 2018, aiding India’s internet user base to cross 500 million by 2018.