The yet to be launched the digital media company, Arre, has bought Apalya Technologies in all cash deal. Apalya Technologies is a Hyderabad based video delivery company. This deal gives Arre access to all online video streaming products of Apalya. Arre is a digital media company founded by Ronnie Screwvala, B Saikumar and Ajay Chacko. No financial details have been officially released. According to the sources closed to the deal, the deal worth $3 to $3.7 million.
The co-founder and MD of Arre said about the development, “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,” On the revenue front, the model will be built around branded content and solutions, advertising, transactions/subscription, and post this acquisition, also platform-related activities.
Ronnie Screwvala said about the development, “We are very clearly focused on original content that’s tailor made for digital. Unlike many traditional media houses, we don’t have legacy businesses to protect. Our DNA is digital and our USP will be creativity,”
This deal of Apalya leads to exit of its existing investors like IDG Ventures, Cisco, Kalaari Capital and a bunch of angel investors. This deal also means that the co-founders of Apalya, Vamshi Reddy and Shiva Bayyapunedi will get two per cent Sweat equity in the parent company of Arre, UDigital. Arre will offer rich and brand new contents in different verticals like video series, documentaries and podcast.