News ArticleAditya Infotech invests ₹45.4 crore to acquire 30% stake in AI video compression firm BLUE
Transaction valued BLUE at ₹151 crore, enhancing CP PLUS product capabilities with AI-led surveillance technology by November 5, 2026 closing
Aditya Infotech Limited invests ₹45.4 crore to acquire 30% stake in AI-powered video compression company KGraph AI Solutions Private Limited (BLUE), boosting CP PLUS's AI-led surveillance capabilities with proprietary technology reducing video storage and bandwidth by up to 90%. The ₹151 crore valued deal combines fresh equity and secondary share purchase, completed by November 5, 2026.
Aditya Infotech Limited
Acquisition / Amalgamation / Merger / Demerger
Aditya Infotech Limited has approved investing ₹45.4 crore to acquire a 30% stake in KGraph AI Solutions Private Limited (BLUE), an AI-powered video compression company, enhancing CP PLUS's AI surveillance product line.
The investment consists of fresh equity infusion and purchase of existing shares, leading to a post-money valuation of approximately ₹151 crore. The deal is set to complete by November 5, 2026, subject to customary closing conditions.
BLUE offers proprietary Semantic Codec technology that layers over the standard H.264 video codec to significantly reduce video storage and bandwidth requirements by up to 90%, while preserving essential visual information.
The technology operates on cost-efficient edge hardware and is compatible with existing camera and recording systems, enabling customers to extend video retention and optimize deployment costs without infrastructure replacement.
This acquisition supports CP PLUS's evolution to an integrated security solutions provider, strengthening AI capabilities in video management, edge computing and cloud integration for smarter surveillance solutions.
BLUE is led by six co-founders with deep industry experience and a 10-patent pipeline, continuing to operate independently while collaborating on R&D with Aditya Infotech's teams across India and Taiwan.
Highlights
- ₹45.4 crore investment to acquire 30% stake in KGraph AI Solutions Private Limited (BLUE)
- Post-money valuation of BLUE is approximately ₹151 crore
- BLUE's Semantic Codec technology reduces video storage and bandwidth needs by up to 90%
- Technology compatible with existing surveillance infrastructure, requiring no GPU hardware
- Partnership aligns with CP PLUS 2.0 strategy to advance AI-led, connected security solutions
- Deal expected to close by November 5, 2026, subject to conditions
Key Data Snapshot
What happened
- Aditya Infotech approved a ₹45.4 crore investment to acquire 30% stake in AI video-compression firm BLUE.
- The acquisition enhances AI-driven surveillance capabilities of CP PLUS products.
- The deal combines fresh equity infusion and secondary share purchase.
- The transaction is subject to customary closing conditions and expected to complete by November 5, 2026.
Key details
- BLUE uses proprietary Semantic Codec technology over H.264 to reduce video storage and bandwidth by up to 90%.
- Technology operates on cost-efficient edge hardware without requiring GPUs.
- Compatible with existing cameras and recording systems, enabling cost optimization for customers.
- BLUE is led by six co-founders with academic backgrounds from IIT Bombay and IIM Bangalore.
- BLUE holds a 10-patent pipeline with applications in progress.
Strategic context
- The investment is aligned with CP PLUS 2.0 strategy, shifting from hardware-led to integrated security solutions.
- BLUE’s technology supports efficient data management, edge computing, AI-powered analytics and cloud integration.
- The partnership combines BLUE's AI expertise with Aditya Infotech's manufacturing and market reach.
- BLUE will operate independently while collaborating on R&D with Aditya Infotech's teams across India and Taiwan.
Background and context
- Aditya Infotech is a leading Indian video surveillance company operating under the CP PLUS brand.
- BLUE pioneers AI-native video infrastructure with Semantic Video Data Lake and Semantic Codec technologies.
- BLUE's platform transforms video streams into intelligent, searchable, and actionable enterprise data.
- The press release included a safe harbor statement noting forward-looking information subject to risks and uncertainties.
Highlights
- ₹45.4 crore investment to acquire 30% stake in KGraph AI Solutions Private Limited (BLUE)
- Post-money valuation of BLUE is approximately ₹151 crore
- BLUE's Semantic Codec technology reduces video storage and bandwidth needs by up to 90%
- Technology compatible with existing surveillance infrastructure, requiring no GPU hardware
- Partnership aligns with CP PLUS 2.0 strategy to advance AI-led, connected security solutions
- Deal expected to close by November 5, 2026, subject to conditions
Disclosures
- Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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