D-ID, a video generation and editing platform, announced on Tuesday its acquisition of Berlin-based B2B video creation platform Simpleshow. The financial terms of the deal were not disclosed by the companies.
According to D-ID chief executive Gil Perry, Simpleshow’s product will now operate under the D-ID umbrella. The two platforms are expected to merge eventually. Simpleshow was founded in 2008 and has raised over 20 million dollars in funding. The startup has offices in Berlin, Luxembourg, London, Miami, Singapore, Hong Kong, and Tokyo. As part of the merger, the combined entity will consolidate its offices in Berlin, Tel Aviv, and the United States. D-ID did not specify the size of the Simpleshow team but stated the merged company will have 140 employees.
Perry explained that Simpleshow initially approached D-ID for a strategic partnership. The management teams saw strong synergy between their products and felt an acquisition would provide the necessary boost to capture a large part of the enterprise avatar video market. Both companies believe in a strong future for digital avatars in various video applications, including training, marketing, and sales. D-ID already offers a suite of AI-powered interactive avatars to its clients.
Simpleshow’s CEO, Karsten Boehrs, noted that when he joined over a decade ago, the company was primarily an agency producing videos for businesses. To achieve greater scale and serve more international clients, the company decided to build a SaaS-based tech platform, launching one of its first text-to-video tools in 2017. Boehrs added that with the recent rise of AI, Simpleshow began conversations with other companies like Synthesia for potential partnerships, which ultimately led to the acquisition by D-ID.
Along with its product, Simpleshow brings over 1,500 enterprise clients to D-ID. This client roster includes major companies such as Adobe, Audio, Airbus, Microsoft, Bayer, HP, T-Mobile, McDonald’s, eBay, and Deutsche Bank. Perry mentioned that this significant client base will boost D-ID’s bottom line and move the company closer to profitability.
Looking ahead, D-ID aims to build interactive training videos. This new technology will allow users to interrupt a video presented by an avatar to ask a question or take a quiz.
D-ID faces strong competition in the enterprise digital avatar space from companies like Synthesia and Soul Machines. Other major players, including Google and McKinsey, are also developing solutions that enable clients to use digital avatars. To date, D-ID has raised 60 million dollars in funding. The company stated it has secured the necessary funding to finance this acquisition but did not disclose the amount.