Vuclip Jigsee

Mobile video search and delivery company Vuclip has acquired the total assets of the mobile video streaming startup Jigsee for an undisclosed amount.

The financial details of the acquisition were not disclosed but Vuclip mentioned that this acquisition will provide them access to additional proprietary video streaming technologies and also strengthen its mobile app development talent. Vuclip claims to currently deliver more than 25 million videos to more than 45 million monthly unique users and plans to develop and launch new apps to complement its browser offerings, focusing on India, the Middle East and South East Asia.

Founded in 2008, Jigsee offers an app platform for content providers to set up and manage their own mobile video applications. Jigsee had raised undisclosed Series A funding from Indian Angel Network, with participation from Sequoia Capital in March 2011. Prior to this, it had raised angel funding from a consortium of angel investors in Canada in July 2010.

The company claims that apps created on its platform provide native support for more than 700 devices and were downloaded 10 million times till now. Some of the apps created on the platform include UTV’s video and devotional app, Bindass’s video app and Disney’s video app.

Besides this, Jigsee also offers an app platform, allowing any content provider to easily set up and manage their own mobile video applications. Vuclip can therefore probably offer these services as branded solutions for its own clients.

Why Buy For Feature Phone Tech?

This seems to in line with Vuclip’s new strategy to make a strong mobile app-based approach to remain relevant in these regions. In its early days, Vuclip had partnered with telcos to get featured on their respective on-deck portals, through which telcos got incremental video views, and Vuclip got usage. Vuclip was able to monetize the content through mobile advertising, and possibly through revenue share from telcos, since the advertising rates on mobile are quite low.

Going forward, we believe that the video consumption will be primarily driven by Apps, popular destinations like YouTube and mobile search which is currently dominated by Google, making the role of a browser-based video search engine less relevant. This is where Jigsee acquisition comes into picture, since Jigsee had developed an video streaming app. The company had also claimed that it had deployed video on demand (VOD) solutions in low-bandwidth conditions on phones with basic features, and has tested its services in India and Bangladesh in March 2011.

While Vuclip already offers native iOS, Android, Symbian and BlackBerry apps, the feature phones market is a very important market in India and we believe that this acquisition will allow Vuclip to develop apps for both feature phones and low cost smartphones as well as improve the streaming functionality of its existing apps to work in low mobile Internet speeds.