Doubles India revenue and grows to 100+ member team. The company aims to target revenue of $10mn by 2016
BestMediaInfo Bureau | Delhi | July 30, 2013
India-bred multinational digital agency, Gozoop, which recently expanded its global presence by setting up operations in Singapore, has today announced the acquisition of Red Digital, one of Indiaâs leading social media agencies. With this acquisition, clients and employees of Red Digital will be consolidated under the Gozoop brand, thus strengthening the latterâs Indian operations.
The acquisition is in line with Gozoopâs strategy of increasing the revenue contribution from its Indian operations. Over the past few years, Red Digital has worked for several marquee brands such as Mumbai Indians, Dell, PepsiCo, BMW, Parker Pens, Adidas, PVR, Godrej, Berger Paints, Reliance Foundation, Educomp, Citibank, ICC and Discovery Channel.
The acquisition of Red Digital will play a pivotal role in Gozoopâs global expansion in terms of operations and client portfolio. With Red Digitalâs rich client base and strong presence in five key cities in India, and Gozoopâs international exposure and clientele, the combination will enhance Gozoopâs global presence and cost efficiencies. Currently, 65 per cent of Gozoopâs revenue is attributed to its international operations in UAE and Singapore. Post the acquisition and with a total of 65+ retainer clients, Gozoop aims to double its Indian revenue in the next financial year. Gozoop's domestic operations willÂ now contribute close toÂ 50 per cent of revenues, an increase of 50 per cent from earlier.
The acquisition will also increase the employee strength of the company to about 100 members, making Gozoop one of Indiaâs largest digital agencies in terms of employee strength as well.
AhmedÂ Naqvi, Managing Director (India) and Co-Founder of Gozoop,Â said, âGozoop has alwaysÂ aspired to be a market leading digital agencyÂ and this dealÂ willÂ exponentiallyÂ accelerate our ability to realise that ambitionÂ byÂ giving us access to newer geographies across India. Red Digital'sÂ world-class brands and top talent, together withÂ Gozoop's end-to-end digital service offerings and social products like Zozolo,Â will help move our collective clients and the industry forward. We expect further consolidation in our industry and lookÂ forward to acquiring digital agencies to fuel our growth in IndiaÂ as well as to enter International markets like USA, Australia and Qatar.â
Rohan Bhansali, CEO and Co-Founder of Gozoop, said, âAfter our successful international forays into the UAE and South-East Asian markets, the acquisition of Red Digital further cements Gozoop as a fundamentally strong company. This move is in line with our vision to be amongst the top 2 digital agencies across all our markets.â
Given Gozoopâs end-to-end digital solutions and in-house social loyalty and analytics tools such as Zozolo, the agency is well positioned to provide a more holistic and integrated approach to managing the digital presence of Red Digitalâs clients. Bhavit Sheth,Â Co-FounderÂ of Red Digital, will be actively involved during the transition period, to ensure a smooth process.
Commenting on the business acquisition,Â Sheth said, âRed Digital's acquisition ushers in a new and improved era for those who we care about the most: our clients and employees. Our clients will now reap the benefits of getting serviced by a much larger agency with more specialisations and can avail of Gozoop's in-house proprietary products such asÂ Zozolo Social Loyalty and Zozolo Social Commerce, which are used by leading brands worldwide. Our employees will now have the chance to further grow their career trajectory and explore many more fields in the digital domain.â
Harsh Jain, Co-Founder of Red Digital, said, âGozoopâs acquisition of Red Digital is a win-win for all parties involved. Red Digital's clientele will now enjoy international standard best practices in operations, client servicing and processes, while continuing to work with the team they love."
Gozoop provides digital solutions to brands like Xpress Money, Interglobe, High Street Phoenix, Commercial Bank of Dubai, Tim Hortons, Cold Stone Creamery, Seacod and Mad Over Donuts amongst others. Red Digital currently manages several high-profile clients like Mumbai Indians, Dell, Mirinda, BMW, Parker Pens, Berger Paints, Reliance Foundation, Discovery Channel, etc., and post the acquisition, Gozoop will manage the digital mandate for these brands.
Following the deal, Gozoop will increase its presence to Delhi, Bangalore, Chennai and Kolkata in addition to its current presence in Mumbai, Dubai and Singapore. Over the next three years, Gozoop plans to utilise over $2 million to venture into international markets like the USA, Australia and Qatar.Own BestMediaInfo Android app for fastest updates and breaking news.Â Click hereÂ to download for free.