Android Creator’s Startup Acquires Indian-Origin Email App ‘CloudMagic’
Android creator Andy Rubin’s consumer technology startup Essential Products has acquired CloudMagic, an Indian -origin startup based out of California and Bangalore, for an undisclosed amount. The news was first reported by LiveMint followed by confirmation from Essential Products’ officials.
Founded in 2010, by Rishit Jhunjhunwala and Rohit Nadhani, Cloudmagic is maker of a popular subscription based email app CloudMagic, which has been re-branded to ‘Newton’ in September 2016.
Interestingly in September this year, CloudMagic had announced that it will be shutting down Newton, marking the end of the subscription-based service after five years. However, in what could be called as a dramatic twist in a tale, Essential Products announced the acquisition within few months after Cloudmagic’s decision to pull the plug on Newton app.
The bootstrapped app had claimed to have 40,000 paid subscribers as of April this year.
A statement by an Essential spokesperson says, “We are always on the lookout for companies with great technology and talent to help accelerate our product roadmap.”
CloudMagic was born out of another Bengaluru-based startup that was founded by Nadhani and sold earlier this year. CloudMagic was incubated inside Webyog, which built tools for database management, and was spun off as a separate company in 2013.
In April this year, Webyog was acquired by Texas-based business software firm Idera as part of an all-cash deal for an undisclosed amount.
Andrew Rubin also known as Andy Rubin, who is the co-founder and former CEO of Android Inc., acquired by Google in 2005, has started Essential Products in late 2015 and has raised $300 million in funding from investors like Access Technology Ventures, Tencent Holdings, electronics contract manufacturer Foxconn, Redpoint Ventures and Amazon’s Alexa fund.
With Essential Products (marketed as Essential), Rubin is currently developing two products, the Android smartphone Essential Phone and Essential Home, which runs Ambient OS, an open source smart home platform by Essential that is aware of the physical layout of your home, the people that live in it.
In August 2017, it was reported that Amazon, Tencent and Foxconn have invested in Essential Products and the company was valued as a unicorn.
Source: IndianWeb2
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