Brahma AI has raised $150 million in a new funding round led by Multiples, setting its valuation at $2 billion. The deal triggers a significant structural change for parent company Prime Focus, which will reduce its voting rights and shift Brahma AI from a subsidiary to an associate company on its balance sheet.
Brahma AI, a technology firm leveraging AI for media and video assets, has secured $150 million in fresh capital, pushing its valuation to $2 billion. The investment round is led by Indian private equity firm Multiples, which has committed $100 million as part of this transaction. This capital infusion is set to support the company’s expansion into Silicon Valley and the development of new technologies, including interactive digital humans.
For investors of the listed parent company, Prime Focus, this deal brings a major change in accounting and control. Previously, Prime Focus held 89.2% of the voting rights in Brahma AI. Following this transaction, those voting rights will decrease to 24.9%. Consequently, Brahma AI will move from being a subsidiary to an associate company for Prime Focus. In financial terms, this means Prime Focus will no longer fully consolidate Brahma AI’s revenue and expenses into its own financial reports. Instead, it will report its stake as an investment, which is a significant change in how the company presents its earnings to shareholders.
Despite the reduction in voting power, Prime Focus will maintain an economic interest of roughly 66% in Brahma AI through its DNEG unit. The company, founded by Prabhu Narasimhan, specializes in automating the organization and creation of high-end video and audio content. Its technology stack combines expertise from DNEG, Metaphysic, and Prime Focus Technologies. Currently, the platform services large enterprise clients, including Warner Bros, the NBA, and the Mayo Clinic.
The management has outlined an aggressive growth roadmap, with the new funds earmarked for expanding research capabilities and boosting global sales. The launch of interactive digital humans remains a key focus area, aimed at bridging the gap between automated AI generation and real-time user engagement. The company also maintains the option to scale the funding round further if market demand remains strong, with potential for an additional $100 million in investment.
Investors in Prime Focus should track the company’s upcoming quarterly results to understand the impact of this deconsolidation on its reported revenue and profit margins. The shift from a subsidiary to an associate structure will change the presentation of the balance sheet and profit and loss statement, which is a critical detail for long-term monitoring of the company's financial performance.