Saregama, the music label owned by the RP-Sanjiv Goenka Group, has announced the acquisition of a majority stake in digital entertainment firm Pocket Aces Pictures Pvt Ltd. The deal involves Saregama acquiring 51.8% of Pocket Aces’ shares for ₹174 crore in an all-cash transaction, with a clear pathway to acquiring an additional 41% stake over the next 15 months at pre-agreed multiples.
Pocket Aces is a digital content creator and publisher with a focus on youth-centric content. The company boasts an intellectual property (IP) catalog comprising over 3,000 content pieces, including web series, sketches, music videos, and reels on channels like FilterCopy, Nutshell, and Gobble. It also manages a talent pool of more than 100 digital influencers through its arm, Clout, and produces web series for major OTT platforms like Netflix, Disney+ Hotstar, and Amazon Prime Video. Pocket Aces reported revenue from operations of ₹104 crore in FY23.
The acquisition of Pocket Aces aligns with Saregama’s strategic goal of establishing a leadership position in new music content across various Indian languages. It also grants Saregama access to Pocket Aces’ extensive distribution network, which reaches over 95 million followers. This expanded reach will aid in popularizing Saregama’s music library among the 18-35 age group.
Additionally, the acquisition is expected to create synergies between the two companies, particularly in artiste and influencer management and long-format video content creation.
Avarna Jain, Vice Chairperson of Saregama, commented on the acquisition, saying, “This partnership with Pocket Aces will add new dimensions to our business as we tap into the burgeoning young digital audiences.”
Saregama has been actively exploring opportunities to monetize its intellectual properties. The company plans to organize live shows and concerts based on its extensive library of Hindi original songs. These events will draw inspiration from the movies in which these songs were featured, creating immersive and engaging experiences for audiences. Saregama is also working on various iterations of its Carvaan wireless speakers to cater to niche audience segments.
On the film production front, Saregama’s subsidiary, Yoodlee Films, is focusing on regional cinema, primarily in Malayalam and Punjabi, with ventures in Tamil and Telugu as well. This diversification reflects Saregama’s commitment to expanding its presence in the entertainment industry.
