Exclusive | Vuclip on the go with a CAGR of 200% in revenues: Nickhil Jakatdar

Mobile space in India has developed phenomenally over the last five years due to huge penetration of low cost mobile devices, more affordable data plans and improving bandwidth. For many, mobile phones have become their only screen; they are discovering a new world of data services through mobile video. Consumers want services beyond standard voice calls and more so, want the latest content most relevant to their interests. 

Emerging markets such as India, Indonesia, Latin America and the Middle East have a large, youth population turning to mobile as their only internet connection. In addition, mobile sharing is high in these countries. This has significant implications for content providers and advertisers. 

Being a company that has created an impact on the manner people around the world consume media and information, especially in emerging markets, Vuclip has 80 million unique monthly users accessing more than 1.5 billion minutes of video per month on over 5,500 devices and it is interesting to note that 20 million of Vuclip’s total users are from India alone.  

In just about five years, Vuclip has become the world’s largest independent mobile video and media company, allowing users to search, consume and share videos on any internet-enabled mobile device. Using proprietary real-time transcoding and adaptive bit-rate streaming technology, Vuclip serves video on-the-fly, on any device, in any country, providing unparalleled reach for its partners. 

Speaking to Adgully, Nickhil Jakatdar, CEO and Co-Founder,Vuclip says,“We have optimized the video delivery from low end 2G networks to the 4G and Wi-Fi networks.” By partnering with operators such as Vodafone and Airtel, the company has offered incremental revenue opportunities, reduced tolls on data load in the face of growing mobile media consumption and provided custom products. “We also have partnerships with CelCom, Du, Idea, Maxis, Tata DoCoMo, and Telkomsel. Vuclip also works with some of the world’s largest brands including Cadbury. In addition to blue-chip brands and advertisers, leading Hollywood and Bollywood movies have also tapped Vuclip to promote their content. Examples include ‘After Earth’, ‘Amazing Spiderman’, ‘Mumbai Mirror’, ‘Patang’, ‘Skyfall’, and ‘The Dark Knight Rises’,” adds Jakatdar.

The company’s business model keeps the benefit of the entire mobile ecosystem in mind. Avers Jakatdar,“We follow a freemium model with premium services, providing personalized content to users through video alerts. Vuclip also works with brands providing the platform for advertising campaigns.”  For operators, its technology compresses video files down to as much as 20 per cent of its original size, leading to higher retention rates and more downloads, driving revenue for carriers and for Vuclip. Higher retention for an audience of 80 million global viewers per month creates reach and value for brands, leading to strong partnerships for Vuclip via advertising and customized premium content. 

Vuclip raised $13 million in Series D funding led by SingTel Innov8 and previous investors NEA and Jafco Ventures. The funds raised are being used to expand Vuclip’s global presence, particularly in Asia, the Middle East and Latin America, to further innovation around its media and advertising platform. Vuclip has so far received a total funding of $35 million. It has grown at a compound annual growth rate of 200 per cent over the last three years and is approaching double-digit millions in revenue. 

Earlier this year, Vuclip also acquired the core assets of a mobile video streaming company, Jigsee.  This brought mobile app development talent to Vuclip, as well as proprietary video streaming technologies. “The deal has helped us consolidate our browser and app strategy to provide mobile video for consumers worldwide and to deliver greater value to content providers, advertisers and carriers,” says Jakatdar. 

With 20 million users, India has always been key to Vuclip’s growth and success. Says Jakatdar, “We have created an innovative technology and content delivery platform to give viewers the content they want, when they want it.” This includes India’s first mobile movie portal, Starlight Cinema, which offers more than 9000 movie clips in 13 Indian languages to Mira!, India’s first-ever mobile video channel exclusively dedicated to women that offers video tips on a variety of topics like yoga, cosmetics, fashion, cooking, and self-defence. Vuclip TV shows include thousands of video clips from various popular TV shows in Hindi, English, Telugu, and other regional languages. With Vuclip News, viewers can access the latest happenings at their fingertips using normal data packages. Vuclip Sports allows users to watch their favourite video clips on sports such as cricket and football, Edu, features educational videos for K-12 and higher education including content from the Khan Academy and MIT Higher Education.

In addition to a huge collection of ad-supported, free videos, users can also subscribe to premium video content channels through video alerts. Vuclip powers the mobile video strategy of several top mobile operators in India to bring the best in class experience to users across India. For advertisers, the company has developed new customized offerings such as Slide2Engage, the immersive advertising unit that provides a rich media experience on the browser version of Vuclip and Clicktoact, a mobile video ad unit that provides an optimized media experience across 5,500 devices without an intermediate landing page. It also recently partnered with Millward Brown to provide insights into key brand metrics for mobile beyond click-through-rates to help brands achieve engagement and attention. The company has expanded its team in India over the last two years, and has been increasing partnerships with carriers, content providers, OEMs and brands rapidly. 

As for problems in business, Jakatdar says, “For a global mobile video and media company, the challenges vary from region to region. For example, in India, slower data speeds on 2G are still the mainstay. In countries like the U.S., however, the advent of 4G has led to strained networks.  This is because of excessive data loading which may impede adoption of interactive video-based applications.” Other issues are lack of content localization and regional language offerings which limit mobile video adoption. It has become imperative for operators to make value additions to their service portfolios and for content developers to create markets where enough choices are available for consumers. 

The trend of video on the go has caught up really well in India. More than 50 per cent of content is shared in India as compared with the world average of 24 per cent, according to Ipsos Open Thinking Exchange and 65% of Vuclip’s videos are shared. The mobile video revolution is happening everywhere. In developed countries, smartphone adoption is wide-spread, and many users have multiple screens. They also have access to high-speed networks, creating an optimal mobile video viewing experience. However, this also means that the mobile is often the second or third screen. In emerging market countries like India, however, only 10 percent of users have smart phones. The other 90 percent use one of the many feature phones or low cost smart phones, and their mobile acts as their only screen. They face network constraints and have capped data plans. These factors affect the user’s mobile video experience and impact the way brands engage consumers through ad campaigns and content. Carriers, content providers and brands must operate with this landscape in mind, which differs dramatically from the developed world. 

On future trends in this space, Jakatdar concludes by saying, “Video snacking on mobile has become wildly popular. The demand for entertainment-related content will continue. The regionalization of content is fast emerging as a better way to engage viewers.”