LAGOS JANUARY 26TH (URHOBOTODAY)-iROKO, an online entertainment platform that targets audiences in Sub-Saharan African countries, plans to strike more deals in Nigeria’s booming movie industry after securing $19 million in funding from French premium cable company Canal+ and Kinnevik, a returning investor.
That amount is divided into $12 million of capital funding, which will be used to develop iROKO’s business and technology; and $7 million that is not from equity or debt financing and earmarked solely for several years of content development deals with studios. iROKO has now raised $34 million since it launched in September 2011.
Founder Jason Njoku tells TechCrunch that this is likely iROKO’s final fundraise. The company doesn’t make its subscriber numbers public, but it expects to generate positive cash flow by the end of this year.
“We want to stay disciplined in this current funding environment to achieve that, but at the same time not limit how we grow our product engineering teams in New York and Lagos,” says Njoku. The platform, which is accessible through a website or Android app, currently has about 2,500 to 3,000 titles and plans to increase its catalog rapidly over the next month.
Njoku was inspired to create the platform after he moved into his mother’s London home and saw that she had switched from watching British soap operas to Nollywood movies. Nollywood is a nickname for the hundreds of small studios in Nigeria that create thousands of movies a year. According to Fortune, Nollywood was a $3 billion industry in 2014, putting it ahead of Hollywood in terms of volume, and just behind India’s Bollywood.
Despite its massive output and popularity, Nollywood movies and shows were hard to find—in London, Njoku had to hunt down VCDs for his mother in small stores.
“I went to Lagos and realized that this was a cottage industry and saw a big opportunity,” he says. “Our first distribution platform was YouTube and once we were funded it made sense for us to build our own platform.”