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Yet to be launched digital content platform, Arre has acquired a Hyderabad-based video delivery company, Apalya Technologies in an all-cash deal.
According to the sources close to the development, the deal transaction was somewhere between INR 20 Cr to INR 25 Cr.
Under the acquisition terms, Apalya’s existing investors, IDG ventures, Cisco, Kalaari Capital, Qualcomm and other angel investors will take an exit. Also, the co-founders, Vamshi Reddy and Shiva are subjected to get 2% sweat equity in UDigital, the parent company of Arre.
Sweat equity is a contribution to a project in the form of effort and toil to build the business as opposed to financial equity, where payments are made for any kind of service.
Started in 2005, Apalya Technologies is a video delivery company that integrates with mobile operators, content owners and mobile advertisers, to create new revenue streams across new media. Last year, the company launched a video-on-demand service called myplex to bring Hollywood content along with live content across movies, TV shows, video clips, trailers and other entertainment to users.
On the other side, UDigital, a digital media venture founded by Ronnie Screwvala, B.Saikumar and Ajay Chacko announced that it will launch the content platform Arre by January 2016. The platform will be a host for various stories across genres and formats in various formats including video series, podcasts and documentaries. Apalya’s acquisition is also in line to help Arre to add platform capability to its digital content.
B Saikumar, co-founder and MD of Arre said, “With this acquisition, we not only get one of the best over-the-top (OTT) platforms in business but also inherit long-standing relationships with telcos — in India and also some global geographies.”
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