Selvaraghavan's next venture was another juvenile love story, "7G Rainbow Colony", which saw him collaborate with Yuvan Shankar Raja and Arvind Krishna again. He revealed that the film's inspiration came from his college days when he had been fascinated with a Punjabi girl called Ruchika, during his education in KK Nagar. He based several of the scenes on real-life happenings with his friends, revealing that the film was "75% biographical" and the lead character was an "average guy" like himself, who "no one would make a film on". He cast Ravi Krishna, son of the film's producer A. M. Rathnam, in the leading role after a successful screen test while choosing to retain Sonia Agarwal as the lead actress, due to her Punjabi origin. The film opened in October 2004 to positive reviews, with a critic from Sify.com noting: "Unlike other contemporary film-makers running after superstars and making formula films, Selvaraghavan pushes the cinematic envelope and brings savvy freshness to the form, hitherto unexplored". Another reviewer from Rediff.com added: "Selvaraghavan has once again displayed his skill making a movie that is touching without being mushy, and believable because of its realism", noting that ""7G Rainbow Colony" remains with you, disturbs you and lingers like the glowing embers of a fire long burnt." Consequently, the film and its dubbed Telugu version went on to become amongst the most profitable films of the year.