PayTunes, Delhi based mobile advertising platform has secured around $500k in Pre Series A funding from Indian Angel Network and CIO Angel Network. On Behalf of IAN, Vishal Khare and Rajeev Arora have led the round and both of them will join the board of PayTunes. Apurva Parekh and Sanjay Mehta also invested in the same round. Prior to this, the startup had closed in the seed round worth $100K from CIO Angel Network.
PayTunes, founded in July 2015 by Divya Pratap Singh, Gaurav Tiwari and Rakesh Sehgal, provides a targeted medium to the advertisers and the brands to reach out to the mobile customers with the help of Audio Visual advertisement. Recently, Amit Naredi, Former Co-Founder and Head of Sales at My FM joined the team at PayTunes.
Users have to download an app on their smartphone which changes their mobile ringtone to the tone of advertisement. Once the call is hung, there is a short video ad displayed on the screen and users get paid for the same. For every ad watched, the user gets certain points, which can later be redeemed against mobile bill payment or recharges. It also has offers to redeem the points through the online eCommerce websites.
The advertisers, on the other hand, get a complete ad platform with in-build analytics and tracking reports. They can track the performance of the campaign along with push the advertisements to users based on their geography and other factors.
Speaking on the development, Vishal Khare said that most of the advertisement budget in India still goes to the traditional means including television, radio and print. PayTunes is trying to convert the spend on traditional mean to the new age technology and the approach allows the advertisers to show their audio visual content in a very engaging way, which is accepted at a great rate by the users too.
The raised funds will be used to expand the team in verticals like sales and marketing.