Three people familiar with the matter said Saregama is in talks to acquire Pocket Aces, which is the oldest Indian music label growing its video ambitions.
The acquisition talks have been ongoing for several weeks, but a deal has yet to be finalized. Loco, which runs out of Pocket Aces in 2021, is not part of the discussions, the people said, requesting anonymity as the deliberation is private.
Saregama's interest in Pocket Aces, which has raised more than $20 million and includes Peak XV and 3one4 Capital among its backers, comes as the Kolkata-based firm ramps up its efforts to broaden its video catalog.
The corporation, which produces over 300 video songs in a quarter, has expanded to several new industries, such as jukebox Carvaan's business, in the past decade. In recent years, it has also invested heavily in South Indian movies and TV series for on-demand video streaming platforms.
The pursuit comes as rival T-Series expands its dominance in digital video by being early to upload video songs on YouTube. Saregama declined to answer questions, whereas Pocket Aces declined.
Pocket Aces, the Indian music conglomerate, seeks a partner that can enhance its video production efforts.
Pocket Aces focuses on short-form video content aimed at young Indians. The popularity of Netflix has surged in recent times, as its comedic and real-world shows have resonated with viewers. The startup has also licensed IPs like The Big Bang to Netflix and shared other content with platforms like Jio, MX Player, Vistara, and Qatar Airways. Pocket Aces has a weekly viewership of 50 million viewers and has 700 million views monthly, according to stats it has revealed on its website.
It has collaborated with T Series, phone makers, e-commerce giants, lenders and scores of young startups to create branded content. Pocket Aces calculated that through a campaign of five episodes it produced for Amazon, aiming to promote the seller business, generated more than 18 million views.