Exclusive: Flipkart.com, among India’s largest online retail businesses, is entering the digital distribution domain by acquiring Mime360, a Mumbai based business digital content platform company which hosts music streaming for labels like Saregama, Universal Music and Inreco. Mime360 delivers music content to publishers like Gaana.com (Indiatimes), Myusic and iMusti, but it also allows for distribution of video (TV and Films), Games and Music. Last week, Mime360 began informing labels of the acquisition by Flipkart.
Confirming the development to MediaNama, Flipkart co-founder Binny Bansal said that that they were talking to Mime360 about powering their digital music launch, and they liked the team and the technology platform that had been built. “We’ve acquired them for the team, because they’re strong in both business and technology. That is coupled with their strong domain knowledge, because they’ve been been at it for the last two years. They have strong relationships (in the music business). The digital distribution platform that they’ve built helps us with the time to market.” It’s a 100% acquisition, and a part-stock, part-cash deal; Bansal declined to comment on the valuation of Mime360.
Flipkart will begin with launching digital music distribution, for which the company is in talks with labels, and eventually roll out ebooks and games. Bansal declined to comment on specific plans, since they’re still in discussions with potential partners, saying that a concrete plan is not in place.
Mime360 has around 11-12 people, and the technology team will eventually shift to Bangalore, while the business team will remain in Mumbai. Sameer Nigam, CEO of Mime360, will head lead Flipkart’s digital distribution business. There are plans to expand both the business team and technology team.