Bengaluru-Based Rephrase.ai Becomes Adobe’s First Indian Startup Acquisition
Adobe, an American software giant, has made headlines by acquiring Rephrase.ai, a Bengaluru-based AI-powered video creation platform. First reported by ET, the deal marks Adobe’s first acquisition in the generative AI and video-tooling space and was announced via an internal memo circulated within Adobe confirming this move by the US software giant.
As part of the deal, the majority of Rephrase’s team will be part of Adobe, also becoming the first Indian startup to be acquired by Adobe.
Adobe Acquires Rephrase.ai
With this deal, Adobe aims to integrate the capabilities of Rephrase with its in-house video-editing platform, Creative Cloud, as the American software giant focuses on delivering AI-driven video content to its customer base.
Speaking about the deal, Ashley Still, Senior vice president and general manager, Creative Cloud, Adobe, highlighted his excitement about Bengaluru-based Rephrase’s expertise in generative AI video and audio technology.
Still stated that the expertise of the Rephrase.ai team in generative AI video and audio technology and experience-building text-to-video generator tools will extend Adobe’s generative video capabilities. Their expertise will enable the American software giant to deliver more value to their customers faster, all within their industry-leading creative applications.
Rephrase.ai | AI Video Personalization
Rephrase.ai, founded by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla in 2019, is a text-to-video generation platform that enables users to create professional-looking videos with a digital avatar in minutes.
It’s noteworthy that investors of Rephrase.ai are poised to complete a cash exit through this acquisition by Adobe, with founders receiving a settlement in both cash and Adobe stock. Commenting on the development, an Adobe spokesperson highlighted the firm’s focus on leveraging new talent and technology to amplify growth and create enhanced value for stakeholders.
The spokesperson said,
“Adobe has a strong track record of accelerating growth through both organic and inorganic innovation. We are always on the lookout for new talent and technology that supports our strategy and creates more value for our stakeholders.”
Last year, Rephrase.ai raised $10.6 million in a Series A round of funding led by Red Ventures to enhance its capabilities by integrating product experiences, hiring, and expanding its presence in North America.
This transaction underscores the growing competition in generative AI among big tech companies. In a similar move of leveraging AI, Microsoft Azure recently unveiled text-to-speech capabilities for digital avatars via its Azure AI speech service, amplifying the competition for domestic players like Rephrase.
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