Saregama, the renowned Indian music label, has recently announced its acquisition of a 51.82% stake in Pocket Aces, a prominent startup in the digital content industry. This move marks Saregama’s strategic expansion into the world of videos, further diversifying its portfolio. The acquisition is valued at approximately $20 million, with Saregama planning to invest an additional $1.8 million in Pocket Aces in the near future.
Key Takeaway
Saregama’s acquisition of a majority stake in Pocket Aces demonstrates the former’s strategic focus on expanding into the video space. This move not only diversifies Saregama’s business but also strengthens its presence in the digital content industry. Pocket Aces’ success in producing compelling short-form videos and securing partnerships with prominent platforms has cemented its position as a rising star in India’s rapidly growing digital content landscape.
Building a Strong Foundation
The transaction between Saregama and Pocket Aces was revealed by the Kolkata-headquartered music label in a recent stock exchange filing. Saregama also expressed its intentions to potentially acquire up to 92.61% of Pocket Aces, with the pricing details contingent upon the fulfillment of certain predefined metrics. This acquisition represents a significant step for Saregama as it aims to tap into the thriving digital content market.
Pocket Aces: A Rising Star in India’s Digital Content Industry
Pocket Aces, known for its production of short-form video content targeted at the youth, has witnessed tremendous growth in recent years. With over 30 new content pieces created daily, Pocket Aces has amassed a dedicated following. Its shows, which often revolve around comedy and real-world issues, have resonated strongly with viewers. Moreover, the startup manages a roster of more than 100 digital talents and has successfully licensed intellectual properties like “Little Things” to Netflix. Additionally, Pocket Aces has collaborated with various platforms, such as Jio, MX Player, Vistara, and Qatar Airways.
According to publicly disclosed statistics, Pocket Aces boasts 50 million weekly viewers and garners an impressive 700 million views each month. Its digital content has struck a chord with the Indian audience, propelling the startup to become a dominant player in the industry.
