OnMobile Global Ltd: 74 Mn Subscribers, ₹-3 Cr Loss – Still Stuck on “Hello Tune” While the World Streams Spotify

1. At a Glance

OnMobile Global Ltd, born in 2000, is the OG of mobile value-added services (VAS). Back then, setting your “Hello Tune” to Daler Mehndi was peak cool. Fast forward 25 years, they still earn from ringback tones while Gen Z streams on Spotify. With ₹575 Cr revenue, ₹-3.4 Cr PAT (FY25) and a market cap of ₹554 Cr, this is a classic case of “big subscriber base, small profit.”

2. Introduction

Remember when caller tunes were the ultimate flex? OnMobile built an empire on that. At its peak, the company was present in 64 countries with 74 million subscribers. Products now include gaming platforms (Challenges Arena, ONMO, Gamize), infotainment, and digital content stores.

But here’s the problem: innovation has been as slow as BSNL broadband. While competition jumped to OTT and hyper-personalised gaming, OnMobile stayed stuck on “tones, contests, and infotainment.” Revenues are stagnant (10-year CAGR negative), and profitability swings harder than a reality show judge.

Still, they’ve got reach: Airtel, BSNL, Movistar, Ooredo, PhonePe, Celcom, Dialog, Vodafone Idea. They aren’t irrelevant, but they’re that family uncle who still uses ringtones instead of Spotify playlists.

3. Business Model – WTF Do They Even Do?

OnMobile earns by supplying B2B2C content to telcos and enterprises.

• Mobile Gaming (~6.75 Mn subs): Challenges Arena, ONMO, Gamize.
• Entertainment (~58.5 Mn subs): Ringback tones, contests, videos, infotainment.
• Content Store: Curated music, sports, and videos sold through carrier billing.

Revenue mix (FY23): Tones 37%, Videos 37%, Gaming 20%, Others 6%.
Geography: Europe 49%, India 22%, Africa 22%, RoW 7%.

Basically, they’re still living off caller tunes while trying to make “Buzzmo” gaming cool.

4. Financials Overview

Annualised EPS = ~₹5.9 → CMP ₹52 → P/E ~8.8x (but trailing loss, so actual P/E not meaningful).

Commentary: A rare profitable quarter, but sustainability