Vuclip Acquires Jigsee For Stock-Swap Deal

by Paul Joseph on February 28, 2013 · 0 comments

Vuclip, mobile video search and delivery company has acquired Mumbai and Toronto based mobile video streaming startup Jigsee for a no cash stock-swap deal. Jigsee’s early investors Indian Angel Network (IAN) and Sequoia Capital have exited Jigsee and have become shareholders of Vuclip without board representation.  However, the deal amount has not been disclosed yet “This is a stock-swap deal and no cash is involved,” said IAN president Padmaja Ruparel. No statement has come from IAN either regarding the valuation of the deal or how much stake IAN would hold in Vuclip. She said:  “The IAN members will now own shares in Vuclip and this is a great opportunity for us. This will give us a presence and threshold in an overseas market, and stake in a strong niche technology brand like Vuclip.” Jigsee offers apps for content creators to setup and market their own mobile video applications. It was founded in the year 2008 by Ray Newal, ex content and business development head at Yahoo! Canada.  Jigsee successfully closed an angel round in July 2010. It also raised its first round of funding of approximate $1 million from IAN 2 years back. Sequoia Capital participated in that round as well. As mobile internet usage rises high, people are watching videos through apps rather than watching videos on browsers. That is likely to be the reason behind this deal. Jigsee already has a video streaming app and it claims to have rolled out video on demand solution on phones for low-bandwidth condition. Vuclip has its native iOS, Symbian, Android and BlackBerry apps. However, the feature phone market is different in India. This acquisition will enable Vuclip to come up with apps for smartphones and feature phones. At the same time, it can sync its video streaming process with the low bandwidth condition as well. Mobile internet and videos are becoming extremely popular in India. Companies are making strategies and partnerships in order to capture this space. Bandwidth is still a problem though and it needs to be solved soon. Image Courtesy |   telecomlead Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via WATBlog.com – Web, Advertising and Technology Blog in India]

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