Zee Entertainment Enterprises Ltd. has announced a strategic investment of ₹116 crore in Phantom Digital Effects Ltd. (PhantomFX), signalling a stronger push into the high-growth AVGC (Animation, Visual Effects, Gaming and Comics) space.

The investment will be made through compulsorily convertible debentures in one or more tranches, subject to regulatory and shareholder approvals. With this move, Z aims to enhance its content creation capabilities and scale immersive storytelling across platforms and formats.

The partnership is designed as a long-term creative and technological alliance. By leveraging PhantomFX’s global expertise, proprietary workflows, and AI-integrated production capabilities, Z plans to strengthen its content ecosystem. This includes improving efficiencies across animation and VFX-led projects and expanding into premium OTT originals, kids’ content, gaming, and interactive formats.

PhantomFX’s global footprint-spanning markets like the US and UK, along with collaborations with studios such as Milk Visual Effects and Tippett Studio-adds further scale to the partnership. The collaboration will also focus on developing original IPs across OTT, gaming, and licensing, enabling Z to build a stronger pipeline of high-impact content properties.

From a strategic lens, the move aligns with Z’s broader ambition to deepen its omni-channel presence and unlock new monetisation opportunities. By combining its storytelling and distribution strengths with PhantomFX’s execution capabilities, the company is looking to create a more integrated and scalable content ecosystem.

The partnership remains non-exclusive, allowing PhantomFX to continue serving its global client base while expanding its capabilities and market reach alongside Z.