ZEE invests Rs 522 crore in tech startup SugarBox

Zee Entertainment Enterprises Ltd (ZEEL), a media and entertainment company, plans to invest RS 522 crore (US$ 74.69 million) in Margo Networks Pvt Ltd (SugarBox), a tech startup it bought three years ago.

SugarBox provides Internet services to users in areas where the network is bad or unavailable, ZEEL said. Users at important places of interest (PoIs) can access its servers over a local wi-fi network. PoIs consist of public transport, public places, rural areas, hotels, co-living spaces and malls where a large mass of users access a host of digital services. Around 80 per cent of shares in SugarBox are owned by Zee.

Using the SugarBox platform, a user can stream and download videos, listen to music, play games, learn on-the-go, pay bills and access other online services without a mobile data connection. ZEE added that the investment will be focused on strong synergies of the technology developed by SugarBox with the current businesses of the company with a potential to significantly augment digital content consumption.

“The unique technology will enable us to serve content to consumers across the nation, without being restricted by connectivity constraints. We are confident that this synergy will create a strong foundation for us, as we progress towards offering relevant content to consumers across platforms," Mr Punit Goenka, managing director and chief executive officer, ZEEL, said.

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