Seventymm acquires DVD rental player Madhouse

Bangalore-based VCD/DVD rental service company Seventymm has acquired 100 per cent equity of the New Delhi-based Madhouse for an undisclosed amount.

Madhouse is the first Indian company to offer movie DVD rental services via multiple channels - web, SMS, phone and kiosks - for home delivery. Seventymm chief operating officer Subhankar Sarkar declined to comment on the Madhouse acquisition.

Heavyweights such as the Anil Ambani-promoted ADAG, Nimbus and Moser Baer are entering the largely unorganised sector, which is expected to grow to Rs 2,000 crore by 2010.

Industry analysts pointed out that Seventymm has over 25,000 members across five cities and the Madhouse acquisition would make it the largest player ahead of ADAG's entry.

"Seventymm will be have the first advantage as Nimbus's entry is likely to be delayed. The Madhouse network will supplement Seventymm' expansion plans," they added.

Earlier, Seventymm had received private equity funds from overseas amounting to Rs 42 crore.