At meeting held on 08 April 2020
The Board of Zee Entertainment Enterprises at its meeting held on 08 April 2020 has agreed to extend financial and operational support to SugarBox.The Company will invest a sum of Rs 522 crore in SugarBox over a period of time and will provide operational support including through providing performance and corporate guarantees as appropriate and necessary and has authorized SugarBox to finalize the terms of 10 years contract with RailTel Corporation of India.
The company had acquired 80% stake in SugarBox in 2017.
SugarBox operates in the CDN and telecommunications industry and is engaged in providing hyperlocal content distribution services at key places of interest including public transport, rural areas, public places, hospitality and residential areas by setting up storage, compute, wired and wireless connectivity infrastructure. SugarBox has been developing and piloting a first-of-its-kind technology platform in the world in FY18 and FY19 and has recently launched beta services to users at Hyderabad and Chennai Metro, with 22,000 users using the platform daily and across pilots has over 1 mn unique users in all. SugarBox is expected to close FY20 with a turnover of Rs. 4.7 mn.
With the successful pilots of this technology, SugarBox has secured long term exclusive contracts with public transport corporations. SugarBox has also recently bagged a Letter of Award (LOA) to power trains operated by the Indian Railways, Kolkata Metro and all Wi-Fi enabled stations for a period of 10 years.
With this investment, SugarBox will commence commercial operations across existing contracts like L&T Metro, Chennai Metro, NMMT, Kolkata Metro, Indian Railways and forge new partnerships to scale up its network.
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