A new chapter in Saregama’s growth story commences with majority acquisition in a digital entertainment company Pocket Aces Pictures. Saregama will acquire 51.8 percent shares for ~Rs 174 crores with a clear path to further acquire another ~41 percent stake in next 15 months at pre-agreed multiples. The transaction is an all-cash deal. This acquisition will further strengthen Saregama’s strategic ambition to take leadership position in new music across all Indian languages.
Pocket Aces, a youth-focussed digital content creator and publisher, boasts of an IP catalog of over 3000 content pieces ranging across web series, sketches, music videos and reels on its channels FilterCopy, Nutshell and Gobble. The company’s talent management arm, Clout, manages over 100+ digital influencers, and its long-form studio, Dice Media, has created youth-centric web series across OTT platforms such as Netflix, Hotstar, and Amazon.
Pocket Aces’ revenue from operations was Rs. 104 cr in FY23. Revenue has grown by 34 percent CAGR over the last four years.
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 and influencer management and long-format video creation businesses of the two companies.
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."