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Leading music label Saregama on Thursday said it is acquiring a majority stake in digital entertainment start-up Pocket Aces in an all-cash deal. The company said it will acquire 51.8 per cent share for about Rs 174 crore. It added that it will acquire another 41 per cent stake in the next 15 months “at pre-agreed multiples.”
The acquisition will help India’s oldest music label garner a strong reach among younger digital-first consumers and lead in “new music” across all Indian languages.
In a statement, Avarna Jain, Vice Chairperson Saregama said, “This acquisition signifies the confluence of tradition and innovation. While we have always been leaders in the realm of music and media, this partnership with Pocket Aces will add new dimensions to our business as we tap into the burgeoning young digital audiences.”
Pocket Aces, a youth-focussed digital content creator and publisher, boasts of an IP catalogue of over 3,000 content pieces across web series, sketches, music videos and reels on its channels FilterCopy, Nutshell and Gobble. Its revenue from operation. Its revenue from operation stood at . ₹104 cr in FY23. The statement added that evenue has grown by 34% CAGR over the last four years and is expected to grow even faster in the future
The digital content publisher releases over 30 new pieces of content every day. The company’s talent management arm, Clout, manages over 100 digital influencers, and its long-form studio, Dice Media, has created relatable youth-centric web series across OTT platforms such as Netflix, Hotstar, and Amazon.
“Acquiring Pocket Aces will add on a whole new dimension of IP and a distribution network of over 95 million followers, which Saregama will leverage to further popularize its music library among the 18-35 audience segment. It will also create synergies across the artiste & influencer management and long-format video creation businesses of the two companies,” the music company added.
Over the past few years, Pocket Aces raised funding of over $20 million. Its investors included Peak XV Partners (formerly Sequoia Capital), 3one Capital and DSP Mutual Fund, among others.
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