U.S.-based technology giant Adobe has made its first generative AI acquisition of an Indian startup, Rephrase.ai, a Bengaluru-based AI-driven video creation company. According to reports from Economic Times, Adobe aims to integrate Rephrase's technology stack and generative AI video capabilities into its proprietary video-editing platform, Creative Cloud. This move is expected to enhance Adobe's offerings in the video creation space.
The exact value of the deal remains undisclosed.
As part of the acquisition, Adobe will integrate the majority of Rephrase.ai's workforce. The founders of Rephrase.ai will also collaborate closely with the software company moving forward. Currently, Rephrase.ai has a team consisting of approximately 45 employees.
As a result of the acquisition, Rephrase's investors are expected to achieve a full cash exit, with the founders receiving compensation in both cash and Adobe stock, ET report added.
“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 an internal memo to employees.
“A huge shoutout to our team - our technology teams for pushing the frontiers of AI, and our business teams for writing a playbook to sell GenerativeAI in India. Your dedication and hard work have been everything to us, and the company. This is your success, and nobody else's,” Shivam Mangla, co-founder at Rephrase.ai said on X.
Founded by Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, the startup has garnered a total funding of $13.9 million to date. In September of the previous year, it secured $10.6 million in a funding round led by Red Ventures. Additional supporters of the startup encompass Lightspeed India, Silver Lake, 8VC, and Techstars.
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