ZEE extends financial support to SugarBox with Rs 522 crore investment

On Thurday board of Zee Entertainment Enterprises Ltd. (ZEEL) approved investment of Rs 522 crore in Margo Networks, which offers content distribution services under the brand name of ‘SugarBox’. Margo Networks is a technology start-up which developed and patented technology under its brand SugarBox.

SugarBox is an unique platform 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 and co-living spaces, malls… where a critical mass of users accesses 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 and 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% 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.

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.”

While co-founder and CEO of SugarBox, Rohit Paranjpe added,“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.”