Exclusive: Holywater raises $22M for microdramas
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Ukrainian media company Holywater has raised a $22 million Series A to help grow its microdrama app My Drama and other products, the company exclusively tells Axios.
Why it matters: The investment comes as microdramas — short, serialized stories built for binging on mobile — are gaining traction in the U.S.
How it works: The deal is the "largest investment in the microdrama space to date outside of Asia," co-founders and co-CEOs Bogdan Nesvit and Anatolii Kasianov said in a statement. "It sends a clear message to the industry: short-form, studio-quality storytelling is here to stay."
- Founded in 2020, Holywater describes itself as an AI-first tech company. In addition to My Drama, it operates My Passion for digital book publishing, My Muse for vertical videos created by generative AI and Freebits for ad-supported vertical streaming.
- Holywater said it grew revenue threefold in 2025.
Follow the money: European private equity firm Horizon Capital led the round.
- U.S. investors, including venture capital firm Endeavor Catalyst and media and entertainment production firm Wheelhouse, also participated.
- "Their innovative approach to content production, combined with a disciplined, data-driven model for user acquisition, has enabled the company to scale rapidly while maintaining strong engagement and retention," Horizon Capital senior partner Vasile Tofan said in a statement.
The big picture: Microdramas are attracting interest from traditional entertainment companies.
- Microdramas generated an estimated $3 billion in global revenue in 2025, excluding China — nearly triple the prior year — with the U.S. as the biggest market at $1.3 billion, according to Owl & Co.
- Fox Entertainment made an equity investment in Holywater and committed to producing more than 200 vertical video titles for My Drama over the next two years, the companies announced in October.
- Fox's inaugural series include "Billionaire Blackmail" and "Bound by Obsession." Holywater said it plans to tap into Fox's existing portfolio of brands and talent, including Jon Hamm, Minnie Driver and Ken Jeong.
What's next: Holywater said its goal is to "build the mobile-first 'Netflix' for vertical video streaming."
- The new funding will support the development of more shows, expanding into new genres and improving its distribution engine.
