Zee Entertainment to acquire stake in startup Bullet to launch micro-drama app

Shares of Zee Entertainment Enterprises Ltd. gained over 6% on Tuesday, June 10, after the company said it entered into a strategic partnership with startup Bullet to launch India's first micro-drama app.

Zee Entertainment will be acquiring stake in Bullet. The value of the stake as well as amount invested to acquire it remain undisclosed.

Micro drama is a short, bite-sized video stories that are creator-driven.

Micro dramas are designed to fit mobile-first consumption habits of younger viewers.

Bullet will be launched within the Zee5 ecosystem for a wide audience reach. The content will be available in multiple languages to maximise accessibility across India.

The acquisition aligns with Zee Entertainment's broader strategy to transform into a content and technology powerhouse.

Zee Entertainment reported a net profit of ₹188.4 crore in the fourth quarter in comparison to ₹13.4 crore in the year-ago period.

Its revenue increased 0.6% to ₹2,184 crore in the March quarter compared to ₹2,170 crore in the previous fiscal.

The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 42% at ₹298 crore compared to ₹210 crore in the fourth quarter of the previous fiscal.

Zee Entertainment's margin expanded to 13.6% from 9.7% in the year-ago period.

Shares of Zee Entertainment gained 6.38% to hit an intraday high of ₹135.56 apiece on Tuesday, June 10. The stock has gained over 13% in the past month.

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