In a significant move, software giant Adobe has recently acquired Rephrase.ai, a Bengaluru-based artificial intelligence startup specializing in video creation. The announcement was made by Shivam Mangla, cofounder of Rephrase.ai, on his official social media handle.
Sharing the news, Mangla expressed excitement about Rephrase.ai’s acquisition by Adobe, a pioneering creative tech company. He highlighted the shift into the new era of Generative AI and the limitless possibilities that lie ahead for the combined teams. The majority of Rephrase.ai’s employees will now become part of Adobe, marking a new chapter for both organizations.
While the exact financial details of the deal remain undisclosed, reports suggest that investors in Rephrase.ai are likely to receive a full cash exit, with the founders receiving compensation in both cash and Adobe stock.
Established in 2019 by IIT alumni Ashray Malhotra, Nisheeth Lahoti, and Shivam Mangla, Rephrase.ai specializes in text-to-video generation. Its platform enables influencers and video creators to produce professional video clips seamlessly. To date, Rephrase.ai has raised $13.9 million in funding.
This acquisition is particularly noteworthy for Adobe as it signifies the company’s foray into generative AI and video-tooling industries, marking its first-ever agreement in this domain. Rephrase.ai holds the distinction of being the first Indian startup to be acquired by Adobe, a company that has predominantly closed deals in the US and Europe.
In an internal memo to Adobe employees, Ashley Still, senior vice president and general manager of Creative Cloud, shared that Rephrase.ai’s team would enhance Adobe’s generative video capabilities. The memo highlighted the potential for delivering increased value to customers quickly and expanding generative video capabilities within Adobe’s market-leading creative applications.
Speaking about the acquisition, Adobe’s spokesperson emphasized the company’s commitment to seeking fresh talent and cutting-edge innovations to accelerate growth. The move aligns with Adobe’s announcement in March of entering the generative artificial intelligence space, aiming to integrate generative AI tools into its suite of services and applications.
Adobe offered a glimpse of its generative AI-to-video capabilities at Adobe Max, its annual creativity conference, showcasing its ongoing commitment to innovation in the dynamic field of artificial intelligence. The acquisition of Rephrase.ai is poised to contribute significantly to Adobe’s expansion in this rapidly evolving space.
