Saregama is in talks to buy Pocket Ace, three people familiar with the matter said, as India’s oldest music label expands its video ambitions.
Acquisition talks have been underway for several weeks, but no agreement has yet been reached, people familiar with the matter said. Loco, the video game streaming platform that will come under Pocket Aces in 2021, is not included in the discussions, the people added, asking not to be identified as the deliberations are private.
Saregama’s interest in Pocket Aces, which has raised more than $20 million and whose backers also include Peak XV and 3one4 Capital, comes as the Kolkata-based company ramps up efforts to expand its video catalog. This is what happened.
The 120-year-old publicly traded company produces more than 300 video songs a quarter and has expanded into several new categories over the past decade, including the jukebox Carvaan business. In recent years, the company has also invested in low-budget South Indian films and television series for on-demand video streaming platforms.
The pursuit comes as rival T-Series is extending its lead over the competition in the digital video space by being the first to upload video songs to YouTube. This strategy has benefited from low-cost Android smartphones and internet access that have brought hundreds of Indians online over the past decade, making T-Series the most subscribed YouTube channel. , has amassed a huge following of nearly 250 million subscribers. Saregama is 37 million.
Saregama did not respond to requests for comment, while Pocket Ace declined.
For Pocket Aces, the Indian music conglomerate is looking for a partner to enhance its video production efforts.
Pocket Aces produces short-form video content primarily aimed at young people in India. Shows, which are typically comedic and deal with real-world issues, resonate with viewers and have skyrocketed in popularity in recent years. The startup also licenses IP such as the show “Little Things” to Netflix and shares other content with platforms such as Jio, MX Player, Vistara and Qatar Airways. According to the statistics published by Pocket Aces on its website, Pocket Aces reaches 50 million viewers every week, and the cumulative monthly views reach 700 million.
We have also worked with T-Series, mobile phone manufacturers, e-commerce giants, financial institutions, and numerous young start-ups to create branded content. According to Pocket Aces, a five-episode campaign created for Amazon to promote sales has garnered more than 18 million views.
