Starzplay, the region’s leading subscription video on demand (SVOD) service, said it has secured its first independent debt financing of $25 million  in the region from Abu Dhabi-based Ruya Partners. 

 

An independent alternative investment firm focused on private credit investments in developing markets, Ruya Partners is headquartered in the Abu Dhabi Global Market.

 

It is a portfolio investment of Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Company and Falcon Edge Capital. 

 

This investment marks the first time that Starzplay has attracted debt financing [from a regional investor], said the statement from the company. 

 

It adds to the $125 million secured by Starzplay since its launch in 2015 from global industry investors Starz, a Lionsgate company, and State Street Global Advisors.

 

The funds, secured on the basis of Starzplay’s financial strength and performance, will be used towards further strengthening Starzplay’s geographic and customer reach, acquiring and producing original content, and maximising long-term value for its stakeholders, it stated.

 

Currently, Starzplay reaches over 1.8 million paying subscribers and is installed on more than six million devices. 

 

Accounting for a market share of more than 32 per cent, the platform recorded exceptional growth in 2020, with independent research showing an astounding growth of 141 per cent in the number of unique users during the year. 

 

Maaz Sheikh, the co-founder and CEO of Starzplay, said: "We are delighted to partner with Ruya Partners and secure its first investment. This new partnership demonstrates our ability to attract diverse, top-notch institutional investors as we continue to drive growth and ensure a path to profitability."

 

"UAE’s strong tech-entrepreneurial ecosystem, and this new investment will further strengthen Starzplay’s capacity to create original content, expand our geographical footprint and cement our lead status as the Mena region’s digital champion," he stated. 

 

“Thanks to Ruya Partners’ investment and our current shareholders, we have the foundation on which to build our plans to list Starzplay, and create even more shareholder value,” he added.

 

Rashid Siddiqi, Co-Founder and Managing Partner of Ruya Partners, said: “The financing for Starzplay is one of our first major investments in the tech sector in UAE. As a homegrown brand, Starzplay has disrupted the market and meets the increase in demand for home entertainment."

 

"The financing reflects our strategy of backing businesses with strong fundamentals and management teams that have a proven track of executing to plan and delivering long-term value,” he added.-TradeArabia News Service