Business

Peruvian startup Cinepapaya expanding as global box office revenues increase

By Agnes Rivera

The young Peruvian company has benefited from a US$ 2 million investment from Brazilian company, Movile.

Peruvian startup Cinepapaya expanding as global box office revenues increase

(Photo: Screenshot/Cinepapaya)

Going to the movies is a great way to wind down and be entertained – once you have purchased your tickets, that is. Aware that long lines at the box office can damper one’s mood, CinePapaya stepped in to fill that gap in the market.

The Peruvian company lets moviegoers purchase tickets online as well as from mobile devices. Information regarding the film such as the synopsis, actor bios, and film trailers are available alongside showtimes.

And it appears that the company is entering the game at the right moment. According to a recent survey of global box office revenues from 2013, the industry experienced a 4% increase, resulting in a value of US$35.9 billion. Sales in Latin America saw a 7% increase.

A large investment, provided by Movile, a Brazilian internet conglomerate, raised the value of the emerging company to US$ 7 million. The mobile ticketing company plans to use the US$ 2 million in new capital “to accelerate its expansion to the rest of Latin America,” as outlined in a press release.

“This marks a milestone in the work we have been doing to bring the evolution of the ecosystem of entrepreneurship and innovation in Peru. We’ve managed to go from an idea, in 2012, to a company valued at US$ 7 million. All in just two years,” CinePapaya co founder, Gary Urteaga, proudly tells El Comercio.

Working alongside Cinemark theaters throughout various Latin American countries (Bolivia, Chile, Colombia, Ecuador, Peru), CinePapaya has plans to expand into Argentina, Mexico, and, of course, Brazil.

The company hopes to delve into the U.S. market, most likely starting with Miami, although the competition will be stiff as other mobile ticketing services are already present.

In 2013, CinePapaya sold 80% of its tickets through their website and about 20% via mobile applications, according to a 2014 press release. However mobile sales are expected to increase as there is a growing global inclination towards purchasing through mobile applications.

“It’s exciting to build the next generation of applications that will define how millions of Latin Americans get the goods and services they want through their phone,” says Fabricio Bloisi, founder and CEO of Movile.

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