Indian VFX firm Prime Focus' subsidiary DNEG raises $200 mn at $2 billion valuation

Prime Focus subsidiary DNEG has raised $200 million.

The London-headquartered DNEG Group, a subsidiary of Indian visual effects and animation company Prime Focus, announced on July 2 that United Al Saqer Group (UASG) will make a strategic investment of $200 million in the group, at a valuation of $2 billion.

"The investment by UASG will accelerate DNEG Group’s strategy of innovation and diversification to evolve from a pure visual effects services provider to a sector-agnostic content production and AI-powered technology partner," the company said.

The Group will fully activate its technology division, Brahma, which is developing comprehensive AI-powered, photo-real CGI creator. Its intellectual property (IP) and content creation arm, Prime Focus Studios, will be enabled to expand its investment in, and production of high-quality content, following its recent successful co-production of The Garfield Movie.

“My career has been built on investing in and leading visual creativity with technology. Our partnership with UASG, the launch of Brahma, and the uccess of our content creation platform are all being fuelled by the power of our technology. We are redefining our business model as a leader in top-end solutions across the world, raising the bar in storytelling by using the latest technology and creative capabilities," said DNEG Chairman and CEO Namit Malhotra.

He added: “This investment will accelerate our plans to further drive The DNEG Group’s existing activities and enable the Group to expand its offering, both in terms of the services we provide and the markets we operate in. We are building on our success with the opening of a studio in Abu Dhabi, bringing content creation and technological capabilities to the region, positioning us as a leader there, and allowing us to leverage our global capabilities like no other.”

The company also has plans to open a new office and visual experience hub in Abu Dhabi, with plans to develop a world class ecosystem in the Middle East for content production, storage, and distribution.

DNEG Chairman and CEO Namit Malhotra will continue in his current role. He will be joined on the Group’s Board of Directors by Nabil Kobeissi and Edouard Zard from UASG, and by Prabhu Narasimhan from NaMa Capital, a leading investor in The DNEG Group, who will also become Executive Chairman of Brahma. Prabhu Narasimhan will take a leave of absence from NaMa Capital to oversee the launch and expansion of Brahma.

DNEG is known for its work on numerous high-profile movies and animations, such as Dune, Oppenheimer, Interstellar, Tenet and Blade Runner 2049, as well as the Harry Potter, James Bond, Fast and Furious, Mission: Impossible and Marvel Cinematic Universe franchises.

Prime Focus Studios, which will increase its content and IP investment and development across live-action, animation, and gaming is currently co-producing films including Animal Friends, Indian epic Ramayana, and The Angry Birds Movie 3.

"The strategic investment by United Al Saqer Group in The DNEG Group is a testament to Abu Dhabi’s emergence as a global powerhouse for creativity, innovation, technology, and investment. This partnership not only accelerates technological advancements in the media and entertainment sectors but also underscores our commitment to fostering a robust ecosystem for content creation. By establishing a new visual experience hub in Abu Dhabi, we are creating numerous job opportunities and enhancing our ecosystem that supports high-tech industries and creative excellence," Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development said.