Mobile content company Coruscant Tec has finally found a buyer. Bollywood biggie Mukta Arts Ltd has agreed to pick up 51% stake in Mumbai based Coruscant for an undisclosed sum. Mukta has retained the right to acquire the remaining 49% stake by next year, Probir Roy, Co-founder and board member of Coruscant Tec told VC Circle.
Coruscant was founded by Roy and Ajay Adiseshann, who, in 2006, founded mobile payment company Paymate. Both Roy and Adiseshann had an understanding with PayMate's investors - Kleiner Perkins and Sherpalo - that they would give up the management of Coruscant. The current deal is a result of that.
Coruscant provided such services as bringing magazines on mobile, live streaming of content on mobile, distributing ringtones and Uncle Pai comics. The company during its peak time employed about 25 people which are now down to 10 or so, Roy said.
For Mukta, the acquisition of Coruscant will give it capabilities for digitising its vast library of bollywood content. Subhash Ghai, Chairman of Mukta Arts, said, “The acquisition of Coruscant Tec is a logical step towards launching Mukta’s web and mobile digital initiatives and entering the VAS space. Mukta is a content creation company and Coruscant Tec offers content delivery solutions in the new media space. We expect synergies arising out of short format content created by Mukta or Whistling Woods students and released through the tie-ups Coruscant has with various telecom companies such as Vodafone, Reliance, VSNL, Tata Teleservices as well as other Partners”.
Ajay Adiseshann, Founder and MD, Coruscant Tec said, “Several players, wishing to consolidate or enter the mobile VAS space, have expressed interest in our company. We found that Mukta Arts with its command over the complete entertainment value chain in India, was the best fit to provide the necessary scale and boost to the business, which is currently a $1 billion market growing at 40% per annum and expected to become a $4 billion market by 2010.”