Zee Entertainment Enterprises Ltd. has announced a strategic investment in Phantom Digital Effects Ltd. (PhantomFX), marking a significant move to strengthen its presence in the fast-growing Animation, Visual Effects, Gaming and Comics (AVGC) segment.

According to a report by The Economic Times, the company’s board approved the investment after evaluating synergies that could enhance its content creation capabilities across platforms and genres. The move aligns with Zee’s broader strategy of building an omni-channel content ecosystem while expanding its global footprint.

As part of the deal, Zee will acquire Compulsorily Convertible Debentures (CCDs) worth up to Rs 116 crore in PhantomFX through one or more tranches via preferential allotment. The investment remains subject to shareholder approval from PhantomFX. The partnership is expected to combine Zee’s strengths in storytelling, IP ownership, and distribution with PhantomFX’s advanced VFX, animation capabilities, and AI-integrated production workflows.

PhantomFX, which operates globally with a presence in key markets like the US and UK, brings with it a portfolio that includes acclaimed studios such as Milk Visual Effects and Tippett Studio. This global scale is expected to help Zee expand its original content pipeline and deliver visually rich, high-impact content across OTT, television, and emerging formats.

The collaboration will also focus on developing original intellectual properties across OTT, gaming, and licensing, while improving production efficiencies for animation and VFX-driven projects. This includes content in genres such as mythology, fantasy, and kids’ entertainment—areas where demand for high-quality visual storytelling continues to grow.

Zee CEO Punit Goenka described the investment as a step forward in building scale and innovation depth, noting that PhantomFX’s expertise complements the company’s ambition to create immersive content that travels across geographies. Mukund Galgali, Deputy CEO and CFO, added that the partnership would unlock operational value and strengthen Zee’s ability to deliver visually compelling content.

PhantomFX founder Bejoy Arputharaj said the collaboration is designed to maintain the studio’s operational independence while enhancing capabilities through combined strengths in technology, execution, and global craftsmanship.

With this investment, Zee is positioning itself to tap into new monetisation avenues while strengthening its foothold in the evolving entertainment ecosystem, where high-quality visual effects and immersive storytelling are increasingly becoming central to audience engagement.