D-ID Acquires Berlin-Based Video Startup Simpleshow

D-ID, a video generation and editing platform, announced on Tuesday the acquisition of Berlin-based B2B video creation platform Simpleshow. Financial terms of the deal were not disclosed.

Simpleshow’s products will be integrated into D-ID, with the long-term goal of merging the two platforms, according to D-ID CEO Gil Perry, who spoke to TechCrunch.

Founded in 2008, Simpleshow has raised more than $20 million in funding to date, according to Crunchbase data.

The startup operates offices in Berlin, Luxembourg, London, Miami, Singapore, Hong Kong, and Tokyo. As part of the merger, the combined company will establish offices in Berlin, Tel Aviv, and the U.S. While D-ID did not disclose the size of Simpleshow’s team, it confirmed the merged company will have 140 employees.

“Simpleshow initially approached us for a strategic partnership. We found synergies between the management teams and products,” Perry said. “We believe we need to accelerate to capture a larger share of the enterprise avatar video market. We believe this acquisition will give us the necessary momentum.”

Both companies see significant potential for digital avatars across various video formats, including training, marketing, and sales. D-ID already offers its clients a suite of AI-powered interactive avatars.

Karsten Boehrs, CEO of Simpleshow, noted that when he joined the company over a decade ago, it primarily functioned as a video production agency for enterprises.

“To scale and serve more international clients, we decided to build a SaaS-based technology platform,” Boehrs told TechCrunch. “One of the first tools we launched in 2017 was a text-to-video solution for customers.”

Boehrs added that in recent years, as AI adoption grew, the company began exploring potential collaborations with companies like Synthesia before ultimately choosing to be acquired by D-ID.

In addition to its product offerings, Simpleshow brings over 1,500 enterprise clients, including Adobe, Audio, Airbus, Microsoft, Bayer, HP, T-Mobile, McDonald’s, eBay, and Deutsche Bank. Perry said this acquisition will boost D-ID’s profitability and bring the company closer to break-even.

Looking ahead, D-ID aims to develop interactive training videos that allow users to interrupt avatars during video playback, ask questions, or take quizzes.

D-ID faces strong competition in enterprise digital avatar adoption, including from Synthesia and Soul Machine. Companies like Google and McKinsey are also developing solutions that allow clients to utilize digital avatars.

To date, D-ID has raised $60 million in funding. The company stated it has secured the necessary capital to support the acquisition, though the specific amount was not revealed.