FreeCharge ex-CEO Kunal Shah has made an investment in the XI Racing League, which has also got Jitendra Gupta from PayU as the other marquee investor.
X1 Racing League, the recently announced motor-sport venture, has got marquee investors in the form of FreeCharge ex-CEO Kunal Shah and Jitendra Gupta of PayU.
The company, states a Press release, proposes to invest over Rs 100 crore in the next three years to promote motor racing.
“X1 Racing League is well-positioned for high-growth and scale. The long-term success will hinge on the broadcast rights and distribution platforms, and the reach…,” Shah said in a statement. He added that the investors are confident with the innovations in the product, packaging and the marketing strategy that has been mapped out, the media valuations would show right it after the first edition, he added.
The X1 Racing League, a brainchild of India’s international car racers Armaan Ebrahim and Aditya Patel, is scheduled to start in the first quarter of 2019.
The race will be a mix of track and street circuits and will see eight city-based franchise teams, each comprising of 2 custom-made cars and 4 drivers.
The investors comprise Rattha Group from Chennai, Mumbai-based White Unicorn Ventures, AngelList India LLP from Delhi, Jitendra Gupta of PayU and ex-CEO of FreeCharge Kunal Shah.
Institutional investors including the Rattha Group, White Unicorn, and Angel List have taken a long position on the League, allowing the founders to invest in R&D including developing electric engines and hi-tech integrations, and assets like cars, safety equipment and circuit infrastructure. X1 Racing is expected to have a ₹ 25-30 crore marketing budget to capture a wider audience across all markets, while the league forecasts a period of 5-7 years to break even on the monetary fund. That said, the teams will break even within three years, a statement from X1 reads.
Talking about the association Utsav Somani of AngelList India said, “We are extremely excited to be supporting entrepreneurs who are passionate and dedicated to their particular art. For X1 Racing League, we got the best minds of the technology and business world to come invest together. Top angels like Kunal Shah and Jatin Aneja were part of this raise and will help open up doors for the success of the league. Unlike many early-stage investments, the X1 Racing League represents sound fundamentals and strong entry-barriers which made the decision straightforward.”
The X1 Racing League is scheduled to kick-start in the first quarter of 2019 and will have a mix of race tracks and street circuits. Eight city-based franchise teams will be competing with two custom-made cars and four drivers. X1 Racing is being seen as a platform to develop and grow local motorsport talent while also reaching out to the enthusiasts on a more personal level in the country.
White Unicorn Ventures Principal Founder, Rohit Chokhani said, “Motorsports has been in India for six decades, there has been considerable investment although this investment is majorly in international racing events. This League will create a weekend event for the host city, making it a proposition for global companies to position themselves to reach and engage with the audience at a mass level, which has never been created before. The League is well-positioned for a global reach and make India a favorite destination for motorsports. With the growing interest in sports media properties across the world, and the ability to reach a large audience in India, we believe live content and IP rights will have exponential growth value and opportunities.”