Adobe acquires Bengaluru-based video-creation AI startup Rephrase.ai
Global tech giant Adobe has ventured into the Indian tech startup ecosystem by acquiring generative AI video-creation platform Rephrase.ai
Startups
Highlights
- Adobe debuts in the Indian startup ecosystem
- Rephrase.ai is a generative AI video creation platform
- Rephrase.ai has garnered $13.9 Mn in funding to date
Tech giant Adobe has made a strategic move by acquiring Rephrase.ai a Bengaluru-based AI-powered video creation platform amid the generative AI boom. This acquisition not only marks Adobe's debut in the Indian startup ecosystem but also signifies its first entry into the world of generative AI startups.
Adobe's leap into generative AI
Adobe's venture into generative AI is not new. The company has been actively developing products within its Creative Cloud suite, featuring editing and workflow management tools like Premier Pro, After Effects, Audition, Character Animator, and Frame.io. Earlier this year, Adobe introduced its own generative AI model, Firefly, aiming to integrate generative AI tools into its suite of apps and services.
The acquisition: A game-changer
Media reports suggest that the acquisition of Rephrase.ai is poised to accelerate Adobe's ability to offer AI-powered video content tools to its vast customer base. This move reflects Adobe's commitment to staying at the forefront of technological advancements in content creation.
Team integration and financial implications
Following the acquisition, a significant number of Rephrase.ai's team members are expected to join Adobe, signalling a seamless integration of talent. Furthermore, Rephrase.ai's investors, including Lightspeed India and Silver Lake, are set to receive a complete cash exit. Founders Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla will reportedly be compensated with a combination of cash and Adobe stock.
Rephrase.ai: Pioneering generative AI for video creation
Rephrase.ai, backed by prominent investors, has garnered $13.9 Mn in funding to date. Noteworthy is the $10.6 Mn raised in a round led by Red Ventures in September last year. The startup specialises in using generative AI to convert text into engaging video content. Its applications span from assisting influencers and video creators in building digital avatars to empowering marketing teams with versatile video content.
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