Private Equity

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Saregama to acquire 52% stake in digital entertainment co Pocket Aces for Rs.189-Cr

Press Release   BSE Announcement  

Kolkata-based, publicly listed RP-Sanjiv Goenka Group music company Saregama is to acquire 6,60,650 shares - representing a 51.82% stake - in digital entertainment company Pocket Aces for INR 174 crore The all-cash deal will also see Saregama invest INR 15 crore via primary subscription of 25,974 shares of Pocket Aces. Another 40.81% stake will be acquired 18 months from the completion of the first tranche investment, at pre-agreed multiples, taking the acquirer's stake to 92.61%. Pocket Aces' revenue from operations was INR 104 crore in FY23. The company's revenues have grown at 34% CAGR over the last four years. Pocket Aces, a youth-focused digital content creator and publisher, boasts of an IP catalogue of more than 3,000 content pieces ranging across web series, sketches, music videos and reels on its channels FilterCopy, Nutshell and Gobble, and releases over 30 new pieces of content every day. It is claimed to have 95 million consumers across social media platforms Instagram, YouTube and others. 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.

From the Venture Intelligence PE-VC Deal Database: Between Dec-16 and Jun-19, Pocket Aces had raised over USD 20 M from Peak XV Partners, Aarin Capital, Kris Gopalakrishnan, Axilor Ventures, 3ONE4 Capital, Whiteboard Capital, Others. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)