The Subhash-Chandra promoted Zee Telefilms on Monday bagged a $40 million deal from Mondo TV, Europe's second-largest animation channel, for developing animation content in India.

The project will be implemented by the Zee Institute of Creative Arts, a Zee group company under Padmalaya Telefilms.

Senior Zee executives said it was a strategic deal for both the companies as they would make an entry into each other's markets. The deal was signed and announced at Cannes on Monday.

The deal will see the European company moving key development initiatives to India.