India’s oldest label, Saregama India Ltd., has finalized its acquisition of digital entertainment firm Pocket Aces Pictures, which it described as “the secret sauce that will help us transition” to newer forms of content.
The deal began in November 2023 when Saregama acquired a 51.8% stake in Pocket Aces for INR ₹1.66 billion (approximately USD $20 million), with an option to acquire an additional 41% stake within 15 months.
Saregama has now purchased the remaining 48.2% it didn’t yet own for INR ₹2.09 billion ($25 million), according to The Economic Times (India), bringing its total investment to INR ₹3.75 billion ($45 million).
Pocket Aces Pictures is known for its short-form video content that appeals to young Indian audiences, boasting a weekly reach of over 50 million viewers. The company produces more than 30 new content pieces daily and distributes them across OTT platforms like Netflix, Hotstar, and Amazon. Their videos garner over 700 million views per month, and they have established brand partnerships with over 200 companies.
“Acquiring Pocket Aces has added on a whole new dimension of IP and a distribution network of over 120 million followers, which we will leverage to further popularize our music library among the 18-35 audience segment.”
Saregama India
The company’s IP catalog spans more than 3,000 items of content, ranging from web series and sketches to music videos and reels. These are distributed through its channels FilterCopy, Nutshell, and Gobble.
The Economic Times reports that the acquisition was linked to Pocket Aces’ performance, which has been backed by investors such as Peak XV Partners (formerly Sequoia), North Base Media, and Aarin Capital Partners.
In its fiscal year ended March 31, Pocket Aces managed to narrow its net loss by 22% to INR ₹140 million, while revenue declined by 13% to INR ₹900 million, and expenses decreased by 15% to INR ₹1.04 billion, the news outlet noted.
Meanwhile, Saregama’s net income for the fiscal year ended March 31 rose to INR ₹1.98 billion from INR ₹1.85 billion a year earlier, as revenue jumped to INR ₹8.67 billion from INR ₹7.9 billion.
In its most recent annual report, Saregama described Pocket Aces as the “secret sauce that will help us transition” to short-form content. The company said it plans to leverage the capabilities of Pocket Aces “to broaden and expedite our content reach.”
“The collaboration between Saregama and Pocket Aces offers a significant competitive edge, enhancing visibility and facilitating major career advancements for these artists who now have access to Saregama’s music that can be used to enrich their content.”
Saregama India
Saregama said Pocket Aces has a direct relationship with over 120 million younger digital-first customers across platforms like Instagram and YouTube.
“Acquiring Pocket Aces has added on a whole new dimension of IP and a distribution network of over 120 million followers, which we will leverage to further popularize our 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,” Saregama said.
“The collaboration between Saregama and Pocket Aces offers a significant competitive edge, enhancing visibility and facilitating major career advancements for these artists who now have access to Saregama’s music that can be used to enrich their content.”
Music Business Worldwide
