The consolidation of digital agencies in India continues: Mumbai-based digital and social media agency Gozoop has acquired yet another Mumbai-based social media agency Red Digital. While the acquisition price has not been disclosed,
an ET report pegs the price at around Rs 7 crore. Update: Gozoop co-founder and Managing Director (India) Ahmed Aftab Naqvi has told Medianama that this number is incorrect, however he refused to disclose the acquisition price.
While the terms of the acquisition were not disclosed, Gozoop informed that this acquisition will allow them to expand to cities like Delhi, Bangalore, Chennai and Kolkata, along with its existing presence in Mumbai, Dubai and Singapore. Post the acquisition, all the Red Digital clients and employees will now be consolidated under the Gozoop brand.
Gozoop informs that this acquisition is in line with its strategy to increase the revenue contribution from its Indian operations. The company currently generates a major chunk (around 65%) of its revenues from its International operations in UAE & Singapore, while its Indian operations currently account for around 25% of its total revenues. Through this acquisition, it hopes to increase the India contribution to 50%. The company however hasn’t disclosed any specific information on its current revenues.
Gozoop currently offers end to end digital solutions like social media marketing, online reputation management and mobile website and app development (iOS & BlackBerry) among others. It also has a social loyalty & analytics service called Zozolo, through which it offers products like Zozolo social loyalty, Zozolo social commerce and Zozolo social analytics.
The company recently expanded its operations to Singapore and claims to have more than 65 retainer clients. Its clients include Intuit, Titan, Puma, Citibank, Facebook India, Delhi Daredevils, Damas, Pepperfry, 9XM, Groupon and Pond’s among others. Going forward, it also plans to expand operations to International markets like USA, Australia and Qatar over the next three years.
On the other hand, Red Digital offers various digital and social media services like digital reputation management, digital campaign management, developing online games and mobile games for iPhone and Android, advergaming and fantasy sports including fantasy cricket.
It has presence in Mumbai, Delhi, Bangalore, Chennai and Kolkata and its clientele include Mumbai Indians, Dell, PepsiCo, BMW, UTV Motion Pictures, Ibibo, Disney, Adidas, PVR, Godrej, Berger Paints, Reliance Foundation, Educomp, Citibank, ICC, Discovery Channel, Cartoon Network and Apollo among others, which will now be managed by Gozoop.
Digital ad/marketing agency acquisitions in the past year
– In May 2013, Japanese advertising major Dentsu acquired 80% stake in the digital advertising agency and consulting firm Webchutney for an undisclosed amount. Prior to this, it had acquired a 51% stake in Mumbai-based Indian advertising agency Taproot India in August 2012 while Ad2c, a JV between Affle and D2 Communications (a Dentsu & NTT Docomo JV) had acquired mobile marketing firm Mobimasta in March 2012.
– In April 2013, Publicis Groupe had acquired Bangalore-based technology service provider Neev Technologies for undisclosed amount. This was the company’s fifth acquisition in India in the last two years, including the Convonix acquisition in March 2013, iStrat and MarketGate in December 2012, Resultrix in August 2012 and Indigo consulting in April 2012. In 2010, Publicis had also acquired a majority stake in the public relations company 20:20 Media and the social media consulting company 2020Social. Earlier this week, Publicis Groupe had merged with the New York based Omnicom.
– in March 2013, IPG Mediabrands, the media holding group of Interpublic group had acquired the digital marketing agency Interactive Avenues for an undisclosed amount. Following this acquisition, Interactive Avenues had become a part of IPG Mediabrands’ Mediabrands Audience Platform (MAP) and Interactive Avenues co-founder Amar Deep Singh was appointed as MAP India CEO.
– In January 2013, Omnicom owned advertising agency TBWA had acquired the Indian digital agency group Magnon for an undisclosed amount. The acquisition included Magnon’s digital agency Magnon Solutions and its digital outsourcing agency Magnon International.
– In June 2012, Global advertising major WPP Group had also recently acquired a majority 51% stake in Hungama Digital Services Private Limited via its wholly owned agency JWT Singapore.