Picsart Acquires Deepcraft in Seven-Figure Deal

Picsart Acquires DeepCraft to Enhance AI Capabilities

Picsart, a digital creation platform backed by SoftBank and recently achieving unicorn status, has announced the acquisition of DeepCraft, a research and development firm. The transaction involves a combination of cash and stock, valued in the seven-figure range, though specific financial details remain undisclosed.

Expanding Creative Tools with Artificial Intelligence

Picsart currently provides a suite of digital creation and editing tools designed for both individual consumers and professional users, aiming to make photo and video editing more accessible and enjoyable. The company anticipates that integrating DeepCraft’s expertise in artificial intelligence, computer vision, and machine learning will significantly improve Picsart’s existing AI technologies.

This enhancement will also support the increasing demand for video creation tools within the Picsart ecosystem. The incoming team will bolster Picsart’s AI research and development division, known as PAIR (Picsart AI Research), by adding experienced senior personnel.

DeepCraft’s Background and Expertise

Established in 2017 and based in Armenia, DeepCraft specialized in advanced video and image processing techniques. Notably, Picsart itself was Armenia’s first company to reach unicorn status. The co-founders of DeepCraft, Armen Abroyan (CEO) and Vardges Hovhannisyan (CTO), bring over two decades of combined experience in the fields of AI and machine learning.

They are highly regarded within the Armenian tech community for their specialized knowledge. Prior to DeepCraft, Abroyan served as Deputy Minister for the Ministry of High Tech Industry Republic of Armenia, Lead AI Architect at RedKite, and a Senior Software Developer at Synopsys.

Hovhannisyan dedicated 13 years as a senior R&D engineer at Synopsys, demonstrating a long-term commitment to innovation.

Transition and Integration

DeepCraft previously collaborated with various clients on a project basis, including Krisp, PatriotOne, and the Armenian government. These engagements have now concluded, and the team will relocate to Picsart’s offices in Yerevan.

A total of eight senior machine learning and video engineers from DeepCraft will join Picsart as full-time employees following the acquisition.

Picsart’s Investment in Video Technology

Picsart initially entered the video editing market in 2018 through the acquisition of EFEKT (formerly D’efekt). Since then, video usage on the platform has experienced substantial growth, particularly among social media content creators and e-commerce businesses.

In 2021 alone, over 180 million videos were edited using Picsart’s app, representing a 70% increase compared to the previous year. The platform currently offers a wide array of effects and video editing tools, with plans for further expansion driven by advancements in AI and cloud technology.

Focus on Future Video Development

Picsart’s primary interest in acquiring DeepCraft lies in leveraging the team’s skills and technological expertise to enhance its video capabilities, which will be a key area of focus throughout 2022.

It is important to note that this deal does not involve the acquisition of any specific intellectual property (IP) from DeepCraft, as confirmed by the company.

Existing Collaboration and Future Outlook

Prior to the acquisition, Picsart and DeepCraft had already established a collaborative relationship, working together on various technological developments.

Artavazd Mehrabyan, Picsart’s co-founder and CTO, stated, “DeepCraft is a unique team of deep technology engineers, and we’ve already been working with them to build our core technologies for over a year.” He further expressed confidence that the DeepCraft team will be instrumental in shaping the future of video within Picsart.

Strategic Acquisition Following Series C Funding

The acquisition of DeepCraft marks Picsart’s first since securing $130 million in Series C funding in August, led by SoftBank’s Vision Fund 2. This funding round propelled the company to unicorn status, significantly increasing its valuation from approximately $600 million in 2019.

Correction, 12/2/21 1pm et: A previous version of this article incorrectly stated that DeepCraft was the country’s first unicorn; it is Picsart. We apologize for this error.