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3one4 Capital Will Secure an All-Cash Exit as Part of Saregama's Acquisition of Pocket Aces

October 3, 2023
5 mins

Pocket Aces, India's leading digital entertainment company, has entered a strategic alliance with Saregama, India's most esteemed music label. As part of the transaction, Saregama has acquired 51.8% of Pocket Aces, becoming the majority shareholder. It will eventually acquire the entire company in a phased transaction.

3one4 Capital will receive an all-cash exit as part of the acquisition led by this public company.

Founded in 2013 by Aditi Shrivastava, Ashwin Suresh, and Anirudh Pandita, Pocket Aces is a digital content creator and publisher. With 36 million subscribers and 700 million monthly video views, Pocket Aces is a leader in platform-agnostic distribution.

Home to popular channels like FilterCopy, Nutshell, and Gobble, the company caters to India's youth with a vast IP catalogue comprising over 3,000 content pieces, spanning web series, sketches, music videos, and reels. Pocket Aces' talent management division, Clout, manages 100+ digital influencers. Dice Media, their long-form studio, creates youth-centric web series available on leading OTT platforms like Netflix, Hotstar, and Amazon.

The company's strategic edge comes from data-driven audience segmentation and multi-channel distribution capabilities, which helped it consistently deliver in what has been rationally regarded as a hits business. With an OTT-first approach, Pocket Aces optimises ROI and captures market leadership by aligning content with regional preferences to redefine mobile-based video entertainment with precision.

Saregama possesses one of the world's largest music libraries, including 50% of all music ever recorded in India. It stands as the most reliable archive of India's musical heritage. Besides music, Saregama has expanded its footprint into publishing, film production, and the digital entertainment industry, establishing its presence in the global entertainment landscape.

The acquisition solidifies Saregama's presence in the digital entertainment industry and enhances its music appeal among the 18-35 audience segment. This strategic alliance combines Pocket Aces' extensive intellectual property and a 95-million-strong follower distribution network with Saregama's vast music library and expertise. This collaboration will empower Pocket Aces to create even more captivating and innovative content by leveraging Saregama's resources and relationships.

Aditi Shrivastava, Co-founder, MD & CEO of Pocket Aces, said, "Teaming up with a legendary brand like Saregama is a dream come true for us at Pocket Aces. This collaboration will enable us to leverage their vast repository of content, relationships, and musical prowess to further cement our position as the strongest digital entertainment company in India. Our goal has always been to leave a legacy behind, and we couldn't have asked for a better partner to learn that from."

The acquisition bridges tradition and innovation, targeting diverse audiences. It's the convergence of traditional expertise and digital vibrancy, creating an unmatched content powerhouse appealing to classical and contemporary tastes.

Pranav Pai, Founding Partner and Chief Investment Officer at 3one4 Capital, added, "The Pocket Aces team has used their deep experience in the domain to connect with and grow amongst the largest digital audiences in India. Through grounded empathy for their audience's consumption behaviours and preferences, Pocket Aces has reimagined the digital entertainment model. The fact that Pocket Aces is being acquired by a highly regarded public company like Saregama is a testament to the fundamentally sound business that the team has built at scale and the healthy governance with which the company is run. As a very early investor, we are proud to have been a part of crucial junctures of the company's growth leading up to this very positive outcome for all stakeholders."

The partnership marks a significant development in the Indian entertainment industry. Saregama's timeless music legacy, blended with Pocket Aces' digital prowess, creates a formidable force with new and exciting capabilities.

We're thrilled to have been a part of Pocket Aces' remarkable journey from the seed stage, witnessing their rise as India's largest data-driven digital content house. Now, in alliance with Saregama, we are excited for the continued transformation that they will lead across the Indian digital media ecosystem!

Read more at The Hindu and Times of India

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