industry

ZEE to invest Rs 522 crore in tech subsidiary Margo Networks


MUMBAI: Indian media firm Zee Entertainment Enterprises (ZEE) said Thursday it will invest Rs 522 crore in majority-owned subsidiary Margo Networks, which offers content distribution services under the brand name of ‘SugarBox’.

ZEE said its board has approved the decision to extend financial and operational support to SugarBox and the investment will be made over a period of two to three years.

The media company had picked up 80% stake in Margo in March 2017 for Rs 75 crore, valuing the start-up at Rs 95 crore post issuance of fresh shares. Margo is s expected to close FY20 with a revenue of Rs 47 lakh.

ZEE said that the cost of the acquisition and nature of consideration is yet to be finalised.

Co-founded by Ripunjay Bararia and Rohit Paranjpe in August 2016, Margo Networks is a technology start-up which developed and patented technology under its brand SugarBox that enables seamless access to mobile apps, even in places with bad or no network.

Using the technology, users without an active internet connection can also access mobile apps. The next-generation content delivery network (CDN) can ensure high-speed delivery of content through hyperlocal servers at public transport, rural areas, public places, hospitality and residential areas.

The SugarBox platform is expected to reach 25 million users daily and 300 million monthly unique users by mid-2022, spending an aggregate of 2.5 billion hours monthly in a near-captive environment, where access to apps is limited due to patchy connectivity.

“User will be able to stream ZEE5 videos, listen to Zee Music, play games, learn on-the-go, shop online and engage in other E-commerce activities like order food or book onward transport, etc. This will benefit the company by offering an ecosystem play and contributing to its broader digital strategy,” ZEE said in a statement.

Recently, Margo has secured long term exclusive contracts with public transport corporations, including a Letter of Award (LOA) to power trains operated by the Indian Railways, Kolkata Metro and all Wi-Fi enabled stations for a period of 10 years.

ZEE said that with the new investment, SugarBox will commence commercial operations across existing contracts like L&T Metro, Chennai Metro, NMMT, Kolkata Metro, and Indian Railways, and will also forge new partnerships to scale up its network.





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