The ad agency giants are always on the lookout for fresh talent, and often end up shelling out big monies to buyout startups, that add value to their portfolios. Especially in India, over the last five years, acquisitions have been an integral part of network agencies’ growth plans.
While that’s taking off rapidly, there is another trend emerging; structured acquisition deals in the Small and Medium-sized Enterprises (SMEs) segment are now often seen in the news.
Founded in 2010 by Rohan Bhansali along with Ahmed Naqvi and Dushyant Bhatia, Gozoop, a Mumbai-based digital media agency, is a trendsetter on that front.
Early this October, GoZoop bought out an offline activation agency, and syndicated content provider 56 Blue Lights. iThink Infotech and Red Digital are two other firms in GoZoop’s kitty. In a quick candid conversation, Rohan Bhansali, Co-Founder, GoZoop, shares what goes behind convincing an entrepreneur, and lessons learnt during acquisitions.
“It’s not about the breadth; it is all about the depth”
Currently, GoZoop has a team of around 185 professionals across India, Dubai and New-York. In India, apart from Mumbai, the agency has a presence in Lucknow, and will soon set up shop in Bengaluru. In the initial years, Bhansali says that they were very ambitious and expanded their base in four countries in a span of three years. Over the years, he realised: “It’s not about the breadth; it is all about the depth.”
Keeping that in mind, Singapore team was dissolved and paid more attention to other markets.
“We are as good as our people”
GoZoop’s strategy is simple: to help budding talent grow, and progress with them. Gone are the days when digital agencies were just asked to present a plan on internet marketing. Therefore, it is always an added advantage to have resources across platforms, believes Bhansali. For instance, Dubai as a market, demands a lot of on-ground activation ideas. Thanks to the mall culture, a lot of clients want to be seen there. 56 Blue Light qualified for helping GoZoop in this area of specialisation, and hence, the deal made sense for the agency for its Dubai business.
“An acquisition is a great way to build a fresh resource pool. In India, we are doing it organically. Let’s not forget, we are as good as our people,” adds Bhansali.
“Convincing entrepreneurs is not an easy task”
Bhansali admits convincing entrepreneur is not an easy task. The agency is already in talks with a Pune- based agency, and a product based firm in Bengaluru. Both the deals are at different stages, and Bhansali couldn’t share more details about them.
According to him, the SME market in digital marketing has still not matured. GoZoop is slowly trying to change that notion. “Like network agencies, there isn’t a set template for us. We are constantly talking with startups, for us it more about skills that the team will bring to the table. Each deal is different and can be customised. There are also chances that after all the negotiations, a deal may fall apart. At the end of the day, it is all about the chemistry,” he concludes.
Source: Economic Times
