Saregama acquires majority stake in India’s leading digital entertainment company Pocket Aces

  • Saregama  on course to invest Rs 10 Bn between FY25, FY26 and FY27


  • As 40% of the time spent on mobile phones is on social media platforms, Influencer marketing is the way forward for all the marketers
  • With 230+ exclusive Artist/Influencers having more than 130Mn YouTube Subscribers and Instagram followers, Saregama through Pocket Aces is all set to ride on influencer marketing growth trajectory   
  • Investments in content grew at 62% to touch Rs 3,160 Mn, highest ever in the history of the company, well on course to invest Rs 10 Bn between FY25, FY26 and FY27
  • Music releases this quarter included the Hindi film Sky Force starring Akshay Kumar and Sara Ali Khan, and the romantic action-drama Dilruba by Yoodlee films; the Telugu film Court featuring Priyadarshi with the chartbuster song 'Premalo'; Tamil films Officer on Duty with Kunchacko Boban and Kingston starring G.V. Prakash Kumar; and the Kannada film Royal starring Viraat.
  • Company released 700+ Film & Non-Film tracks in Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi Bengali and other languages.
  • Acquired 22 music labels across 7 languages with 2800+ songs during FY25 Ø Digital shows like Agra Affairs on Amazon MX Player, Oops Ab Kya on JioHotstar, High Heels on Dice media were released in this quarter.
  • Saregama Live concluded successful Live shows with Satinder Sartaaj in Mumbai & Delhi and Viraj Ghelani in Mumbai, Ahmedabad and Vadodara
  • This quarter various top brands like Tata Motors, Dream 11, Indriya Jewels etc used Saregama songs in their ads. 
  • Ashram S4 on Amazon MX Player, The Kapil Sharma Show on Netflix, JioHotstar for IPL Opening Ceremony, Traitors on Amazon Prime, Exam (Tamil Series) on Amazon Prime etc. licenced music from Saregama for their shows
  • During the quarter 30+ Influencers/Artist added taking the total Influencers/Artist managed by the Company to 230+ with more than 130Mn plus followers and subscribers on Instagram and YouTube.
  • Digital footprint across Saregama owned and controlled channels touched 350 Mn followers and subscribers across YouTube, Instagram and Facebook.   
  •   Avarna Jain, Vice Chairperson Saregama India, said “Another path breaking year for Saregama with highest ever revenue from operations, driven by clear strategy of aggressive investments and diversification of IP monetization, including music, video and live events. The company stands on the cusp of an exciting growth phase with huge opportunities in this fast growing sector”  

https://youtu.be/FMwYNhdVD1A?si=J9eE6HB7ttJ1P12q 

https://youtu.be/oFDhdQ3w134?si=bV4IUyljr5rpiBRb

  • A new chapter in Saregama’s growth story commences with majority acquisition in a fast-growing digital entertainment company Pocket Aces Pictures Private Limited, that owns direct relationship with 95M+ younger digital-first customers across Instagram, YouTube etc
  • Deal:
    • Saregama enters into an agreement to acquire majority stake in fast growing digital entertainment company, Pocket Aces Pictures Pvt Ltd.
    • It will also allow Saregama to extend its footprint in the Youth category, which is a huge strong point of Pocket Aces.
    • Gaining access to Saregama's 150k music assets would enable Pocket Aces to offer its influencers a highly lucrative opportunity to develop Branded Content business, thereby solidifying Pocket Aces' position as the industry leader in Influencer Management
    • This acquisition, with its 95M+ social media follower base, will give Saregama a huge edge in the competitive new content acquisition game.    
  • Pocket Aces
    • 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, and releases over 30 new pieces of content every day
    • Its long-form studio, Dice Media, has created relatable youth-centric web series across OTT platforms such as Netflix, Hotstar, and Amazon
    • The company’s talent management arm, Clout, manages over 100+ digital influencers
      • Its Influencer Management business, Clout, is the biggest in India, both in terms of no of digital influencers and revenue
  • Synergies:
    • 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 & influencer management and long-format video creation businesses of the two companies.
    • With the synergies arising out of this acquisition, the combined revenue of the two Companies is expected to grow at 27-28% over medium-term basis.  
  • Financials:
    • The transaction is an all-cash deal.  
    • Saregama will acquire 51.8% shares for ~Rs 174 crores with a clear path to further acquire another ~41% stake in next 15 months at pre-agreed multiples.
    • Pocket Aces’ Revenue from Operations was Rs. 104 cr in FY23. Revenue has grown by 34% CAGR over the last 4 years and is expected to grow even faster in future

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