Stage OTT – Learnings for Startups seeking to serve the underserved
Plus Staying with the "eyeball economy": Gaming Fund news from Saudi Arabia
Hey founders, funds, & friends 👋,
A warm welcome to the 40th edition of the “Mehtta Ventures Dubai” investment digest newsletter, your weekly news digest about startup stories across the Middle East & India, digital / business trends shaping our lives and curated venture investment opportunities.
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Today’s program:
Merak Capital Launches “Exel by Merak” Gaming Fund and Accelerator
Stage OTT – Learnings for Startups seeking to serve the underserved
The Eyeball Economy in Action
And….Action!
Merak Capital Launches “Exel by Merak” Gaming Fund and Accelerator
Empowering the Next Generation of Gaming Startups in Saudi Arabia
Riyadh, Saudi Arabia – November 17, 2024
Merak Capital has unveiled “Exel by Merak”, a SAR 306 million gaming fund and accelerator designed to support early-stage gaming startups. The initiative, launched at VOV Gaming Centre in Riyadh, aims to position Saudi Arabia as a global hub for gaming innovation by empowering game development studios, gaming technologies, and publishing platforms.
The program will invest in 15–20 startups in its first batch, providing equity funding, mentorship, legal assistance, and relocation support. Participants will focus on creating 15 commercially viable games while contributing to Saudi Arabia’s gaming ecosystem and GDP growth.
CEO Abdullah Altamami emphasized Merak Capital’s commitment to building a vibrant gaming ecosystem, stating, “We leverage our expertise and global network to empower startups with the resources and support needed to thrive internationally.”
The accelerator offers a 14–16 week program featuring a virtual bootcamp, core accelerator support, and a demo day, with additional post-program assistance. Saudi and international startups are invited to apply.
With Saudi Arabia’s gaming market boasting over 24 million gamers—spending significantly higher than global averages—the initiative aligns with the Kingdom’s broader ambitions of fostering innovation and economic diversification.
For more details, visit [Merak Capital’s Website].
Stage OTT – Learnings for Startups seeking to serve the underserved
A Deep Connection with Stage OTT
At Mehtta Ventures Dubai, we’ve always been bullish on the Indian eyeball economy, and the recent developments around Stage OTT validate this belief.
We’ve had the privilege of working closely with the founding team of Stage OTT, having sold them video encoding technologies to stream video in low bandwidth environments and rural India, during their early days.
Knowing the passion and vision of founders Vinay Singhal, Shashank Vaishnav, and Parveen Singhal, it is inspiring to witness their rise as a disruptor in the OTT space.
The Validation of Niche OTT Platforms
A Goldmine in Serving the Underserved
While OTT is often perceived as a space dominated by large players like Disney+ Hotstar, JioCinema, and Netflix, Stage OTT is a testament to the power of niche audiences. With its hyper-local focus on regional languages and dialects, Stage OTT is reshaping the streaming experience for underserved markets in "Bharat" (India’s heartland).
Their success showcases a fundamental truth: audiences beyond metros and Tier 1 cities represent a goldmine of opportunity for startups brave enough to serve them with tailored content.
Growth Amidst Industry Challenges
OTT is widely seen as a “big boys’ game,” requiring deep pockets and extensive infrastructure. Yet, Stage OTT has overcome this challenge by:
Building hyper-localized content in Haryanvi and Rajasthani.
Focusing on subscriber growth, gaining over 250,000 new paying users every month.
Monetizing regional demand, now boasting over 1.2 million paying subscribers in Haryana alone.
Stage OTT’s Funding Journey
Impressive Fundraising Milestones
Stage OTT is reportedly in talks to close a $15 million funding round, led by Goodwater Capital, with participation from existing backers like Blume Ventures. This builds on their strong funding history:
January 2023: Raised $4.8 million led by Blume Ventures.
January 2022: Secured $2.5 million in a pre-Series A round.
November 2020: Raised $1.5 million from Venture Catalysts.
Investment from Olympic gold medalist Neeraj Chopra, further adding credibility.
With a potential valuation of $80–100 million post-money, Stage OTT continues to attract marquee investors, reaffirming the market's belief in its long-term potential.
Market Dynamics and Competition
The Regional OTT Ecosystem
Stage OTT operates in a vibrant and competitive regional OTT market alongside players like:
Aha Video (Telugu and Tamil-focused).
Planet Marathi (Marathi-focused).
Chaupal (Punjabi and Haryanvi-focused).
OM TV (Odia-focused).
In July, Planet Marathi raised $5 million from A & MA Capital, while both Chaupal and Aha Video are reportedly in talks for new rounds.
Riding the Vernacular Wave
According to the latest Ficci-EY media report, vernacular content will constitute 55% of all production as regional OTT platforms expand their offerings. The increasing use of dubbing and subtitling is a significant enabler, helping platforms reach a diverse audience base.
Lessons for Entrepreneurs
Unlocking the Power of Hyper-Localization
Stage OTT’s journey underscores the importance of focusing on:
Underserved audiences: Tier 2 and Tier 3 regions remain an untapped reservoir of subscribers.
Cultural relevance: By offering content in native dialects, Stage OTT has cultivated a deep emotional connection with its users.
Sustainable growth: Lean operations and consistent subscriber growth have positioned Stage OTT as a scalable business model.
A Blueprint for Success in OTT
For entrepreneurs and startups in the OTT space, Stage OTT offers a blueprint:
Focus on quality content over quantity.
Leverage technology partnerships to keep costs low.
Build a strong subscription-driven revenue model rather than over-relying on advertising.
The Eyeball Economy in Action
Stage OTT’s success is more than a story of one platform—it represents a broader shift in the Indian streaming landscape. As regional OTT platforms continue to thrive, niche content is emerging as the driving force of growth in the eyeball economy.
^ To get a sense of Stage OTT’s target audience, it is important to understand the sheer number of users that are available for them to target in India alone. This will also give ideas to streamers OR even other “eyeball economy” focused startups who want to enter India OR Indian content owners thinking of starting their own direct to consumer streaming platforms - India 1 on the Blume Ventures Indus Valley Report above has the most amount of competition. On the other hand, India 2 and India 3 are getting disrupted and ripe for more innovation / product targeting, even by video streamers (read potential for gaming, advertising, media, entertainment and sports). Stage OTT is clearly targeting India 2 and for the immediate future this audience has significant potential to grow!
At Mehtta Ventures Dubai, we remain committed to supporting visionary entrepreneurs like those at Stage OTT. Their journey reinforces our belief in the transformative power of localized, audience-first strategies in media and entertainment.
Stay tuned for more insights into the evolving dynamics of the streaming and eyeball economies.
While you wait for our next newsletter, I encourage you to check out our other newsletter / streaming consulting destination: The Streaming Lab where we cover streaming insights from MENA and India.
The “Mehtta Ventures Dubai investment digest” is a weekly newsletter exploring the trends that matter to startup founders and investment professionals in the Middle East & India. If you are not already a subscriber, sign up and join several others who receive it directly in their inbox every Monday.
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