ZEEL invests Rs 5,220 mn in tech start-up SugarBox

The Board of Zee Entertainment Enterprises Ltd (ZEEL) has agreed to invest Rs 5,220 million in Margo Networks (SugarBox). SugarBox is a first-of-its-kind platform in the world that enables Internet services to work even in areas of bad or no network and empowers users to access them without an active data connection. It creates a hyperlocal data distribution ecosystem by installing CDN Edge servers at key places of interest (POIs), which users can connect to over a local Wi-Fi network.

SugarBox POIs include public transport, public places, rural areas, hotels & co-living spaces, malls, etc. where a critical mass of users access a host of digital services. Using the SugarBox platform, a user will be able to stream and download videos, listen to music, play games, learn on-the-go, shop online, pay bills, order food & groceries, book onward transport and access other digital services, all without dependence on cellular data or even the need of an internet connection.

In the year 2017, ZEEL had acquired 80 per cent equity stake in SugarBox. This investment will be made by ZEEL to exploit strong synergies of the technology developed by SugarBox with the current businesses of the company and with a potential to significantly augment the digital content consumption. With this investment, ZEEL will be able to enhance its growth in the digital ecosystem, expanding its presence beyond OTT & AdTech.

Punit Goenka, Managing Director and Chief Executive Officer, ZEEL, said, “Our investment in SugarBox, gives a strong fillip to the overall digital business, sharpening its approach by many folds. 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.”

Rohit Paranjpe, Co-founder & CEO of SugarBox, added here, “We are extremely excited about this development. ZEE has been a pioneer in the field of entertainment in India and with their strong strategic focus on the digital space, our synergies matched perfectly. With this investment, SugarBox will commence commercial operations across exclusive long-term contracts like L&T Metro, Chennai Metro, NMMT, Kolkata Metro, Indian Railways and forge new partnerships to scale up its network. SugarBox is at the forefront of revolutionizing availability, affordability and reliability of digital services for the next billion users globally – something that even Big Tech has struggled to achieve sustainably. This investment will provide a giant leap towards us achieving that goal.”

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

SugarBox, founded in August 2016, has built a patented hyperlocal data distribution platform. In addition to data caching & delivery, SugarBox uses Edge computing to handle App APIs, Personalization, Registration, Security, Ads & Payments offline enabling Apps to work without depending on mobile Internet or Wi-Fi. Today, SugarBox is available across 250 POIs across the country, with Hyderabad and Chennai Metro being the largest POIs. The SugarBox platform is uses by over 22,000 travellers daily and has been experienced by over 1 million unique users overall.