Rephrase.ai, an AI-powered video creation company based in Bengaluru, is reportedly announced the acquisition of US tech giant Adobe. This is not only Adobe’s first acquisition of a generative AI business, but also its first in the Indian startup scene. The information was shared by Rephrase.ai’s co-founder Shivam Mangla on his official X handle.
“Exciting news! Rephrase.ai is getting acquired by a pioneering creative tech company, ushering us into the new era of Generative AI. As we begin this new chapter in a larger org, the possibilities are endless. Excited to see what our teams will create next in the world of GenAI. The future is creative and bright,” Shivam Mangla wrote in the microblogging site.
Now, as per reports, post-acquisition, the majority of Rephrase’s staff will join Adobe. On the final deal size, however, there were few details in the Economic Times report. Rephrase.ai investors are expected to receive a full cash exit, and the founders will be compensated with cash and Adobe shares, according to the statement.
Notably, Rephrase.ai was the first firm from India to be purchased by Adobe, a business that has mostly done agreements outside of its native market, in the US and Europe.
“The Rephrase.ai team’s expertise in generative AI video and audio technology and experience-building text-to-video generator tools will extend our generative video capabilities — and enable us to deliver more value to our customers faster – all within our industry-leading creative applications,” Ashley Still, senior vice president and general manager, Creative Cloud, wrote in the internal memo to employees on Tuesday.
Established by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, the firm has received $13.9 million in funding to far. The $10.6 million investment, led by Red Ventures, was raised in September of last year. Silver Lake, Techstars, Lightspeed India, and 8VC are some of the startup’s other backers. For text to video conversion, Rephrase.ai employs generative AI. It also provides marketing teams with the video content and aids influencers and video creators in creating digital personas.
