The Xtreme1 or X1 Racing League was announced earlier this month and the world's first city-based franchise format for motorsport will be taking place in India. The first-of-its-kind initiative has been spearheaded by international Indian racers Armaan Ebrahim and Aditya Patel, and the company has now announced that it has secured a group of investors that will be backing the project. In a statement, X1 Racing League has said that institutional investors including the Rattha Group from Chennai, Mumbai based White Unicorn Ventures, AngelList India LLP from Delhi, Jitendra Gupta of PayU and ex-founder of FreeCharge Kunal Shah, have come together to back X1 Racing. The company has also announced an investment of Rs. 100 crore that will be used over the next three years towards the development of the league and promotion of motorsports.
Also Read: World's First City-Based Motorsport Championship 'X1 Racing League' Announced In India
Institutional investors including the Rattha Group, White Unicorn, and Angel List have taken a long position on the League, allowing the founders to invest in R&D including developing electric engines and hi-tech integrations, and assets like cars, safety equipment and circuit infrastructure. X1 Racing is expected to have an Rs. 25-30 crore marketing budget to capture a wider audience across all markets, while the league forecasts a period of 5-7 years to break even on the monetary fund. That said, the teams will break even within three years, a statement from X1 reads.
Talking about the association Utsav Somani of AngelList India said, "We are extremely excited to be supporting entrepreneurs who are passionate and dedicated to their particular art. For X1 Racing League, we got the best minds of the technology and business world to come invest together. Top angels like Kunal Shah and Jatin Aneja were part of this raise and will help open up doors for the success of the league. Unlike many early-stage investments, the X1 Racing League represents sound fundamentals and strong entry-barriers which made the decision straightforward."
The X1 Racing League is scheduled to kick-start in the first quarter of 2019 and will have a mix of race tracks and street circuits. Eight city-based franchise teams will be competing with two custom-made cars and four drivers. X1 Racing is being seen as aplatform to develop and grow local motorsport talent while also reaching out to the enthusiasts on a more personal level in the country.
White Unicorn Ventures - Principal Founder, Rohit Chokhani said, "Motorsports has been in India for six decades, there has been considerable investment although this investment is majorly in international racing events. This League will create a weekend event for the host city, making it a proposition for global companies to position themselves to reach and engage with the audience at a mass level, which has never been created before. The League is well-positioned for a global reach and make India a favorite destination for motorsports. With the growing interest in sports media properties across the world, and the ability to reach a large audience in India, we believe live content and IP rights will have exponential growth value and opportunities."
Founder and former Freecharge CEO, Kunah Shah added, "X1 Racing League is well-positioned for high-growth and scale. The long-term success will hinge on the broadcast rights and distribution platforms, and the reach but we're confident with the innovations in product, packaging and the marketing strategy that has been mapped out, the media valuations would show right after the first edition. With the penetration of sports at an all-time high and the high spends in sports media, I'm excited where this can go. I look forward to helping the founders and the management establish, grow and scale the league."
The investors believe that the X1 Racing League is positioned as a made-for-TV and made-in-India product, that will capture audiences across different age groups and gender. The league will be spread over four weeks for the main races with ownership cost for each team said to be around Rs. 6.5-7 crore per year. Apart from the main event, X1 Racing will also a year-long domestic season of over 12 races with the Indian drivers in the 'Patron's seat', which will allow teams to score additional points with the option of the team owner in the racing seat. Each team will also have a mandatory female driver, in a big boost to the budding women motorsport aspirants across the country.
