Saregama, the historic Indian music label, has acquired a substantial 51.82 per cent stake in the digital entertainment startup Pocket Aces, deepening its foray into video content. The deal, valued at around USD 20 million, includes an additional investment of USD 1.8 million in Pocket Aces, with Saregama looking to expand its stake in the startup in the future.
Pocket Aces, known for producing short-form video content catering to young Indian audiences, has gained popularity with its comedy shows addressing real-world issues. It has also licensed content to platforms like Netflix, Jio, MX Player, Vistara, and Qatar Airways. The startup reaches 50 million weekly viewers and amasses 700 million monthly views.
Saregama's move aligns with its strategy to diversify its video catalog. The music giant intends to leverage Pocket Aces' network of over 95 million followers to promote its music library among the 18-35 age group.
This acquisition deal involves Saregama acquiring 6,60,650 shares in Pocket Aces, giving it a 51.82 per cent stake initially. The remaining 40.79 per cent will be based on the adjusted equity value or enterprise value of Pocket Aces.
Pocket Aces, founded in 2013, operates popular YouTube channels like FilterCopy and Dice Media, along with gaming app Loco and talent management platform Clout. Saregama's acquisition is expected to create synergies in artist and influencer management and long-format video creation.
The acquisition signals Saregama's continued expansion into the digital entertainment space and its quest for a broader audience reach.