PhantomFX Enters Strategic Partnership with Indian Content and Media Giant ‘Z’
CHENNAI / MUMBAI - April 17, 2026 - Phantom Digital Effects Ltd (NSE: PHANTOMFX), a leading Indian visual effects (VFX), animation and post-production studio, announced today a landmark strategic partnership with global content and technology powerhouse Zee Entertainment Enterprises Limited (NSE: ZEEL). The agreement will see ‘Z’ acquiring an approximately 24.95% equity stake in PhantomFX for a total consideration of ?Rs. 116 crores.
This partnership is structured as a long-term strategic investment designed to preserve PhantomFX’s operational independence, management continuity and existing global client relationships, while unlocking strong synergies across animation, visual effects, post-production and original IP creation. Importantly, PhantomFX will continue to be fully managed by its existing leadership team, ensuring continuity in creative vision, strategy and execution. The promoter and promoter group will continue to retain a clear majority stake in the company post-investment, reaffirming their long-term commitment and maintaining control of the business.
Together, PhantomFX and ‘Z’ are positioned to significantly expand their footprint in the high-growth Animation, Visual Effects, Gaming and Comics segment. The partnership is expected to provide PhantomFX with a steady pipeline of projects from ‘Z’, contributing approximately 10 to 15% of the company’s total revenue. PhantomFX will support ‘Z’ across high-end visual effects, animation production, and post-production execution for a wide range of content, including premium OTT originals, animated films, mythology, fantasy and other visually rich formats. In parallel, PhantomFX’s animation division will also accommodate and scale Z’s animated film and series slate, while both organisations collaborate on the development and co-ownership of original IPs for broader monetisation across platforms and markets.
The collaboration combines PhantomFX’s proven strengths in large-scale VFX execution, animation craftsmanship, production scalability and IP-building capabilities with Z’s strong content ecosystem and global distribution reach. In addition, PhantomFX will deploy its AI-powered production tools, offline generative AI technologies and advanced R&D capabilities to enhance content creation workflows. These AI-driven solutions are expected to enable faster turnaround times, improved cost efficiencies and consistent high-quality output, providing Z’ with a meaningful head start in next-generation content production while reinforcing PhantomFX’s leadership in technology-driven filmmaking.
Bejoy Arputharaj, CEO and Founder of PhantomFX, said:
“I am pleased to welcome ‘Z’ as a strategic shareholder and partner. Over the years, PhantomFX has built a strong global reputation for visual effects excellence, animation craftsmanship and large-scale execution across international markets. This partnership is a natural extension of our vision to scale globally while strengthening our capabilities in content creation, animation and IP development. With ‘Z’’s reach and ecosystem combined with our global studios, creative talent and production infrastructure, we are confident of unlocking significant long-term value for both organisations and our shareholders.”
Punit Goenka, Chief Executive Officer, Zee Entertainment Enterprises Ltd., said:
“At ‘Z’, we have always stayed ahead of the curve by enhancing our capabilities and leveraging strengths to engage purposefully with consumers across the globe. The strategic investment in PhantomFX marks a firm step forward in our ambition to build scale and enhance innovation depth. PhantomFX’s global expertise in high-end animation and VFX perfectly complements our aspiration to create immersive and more engaging content IPs that travel across geographies and formats. We will continue to build future-ready capabilities that broaden our creative canvas and technological prowess to lead the next phase of growth in the entertainment ecosystem.”
In recent years, PhantomFX has been recognised with 1 Filmfare OTT Award, 2 FICCI BAF Awards and 10 VAM Awards, positioning itself as a partner of choice on several high-profile productions, including Varanasi, Kantara: A Legend Chapter 1, Saare Jahan Se Accha, Inspector Zende, Khauf, IC 814: The Kandahar Hijack, Thandel, and Kalki 2848AD. Its production arm, PhantomFX Studios further extends its ambition through the development of original IP, most recently Ayalaan, establishing PhantomFX as both a world-class service provider and a growing content creator.
The partnership is structured as a non-exclusive and collaborative engagement, enabling PhantomFX to continue serving its global client base across studios, broadcasters and streaming platforms, while expanding its capabilities and market reach through this strategic alliance.
This transaction is subject to customary closing conditions and applicable regulatory approvals.
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