Social media agencies in the country have some good news to cheer about. Claiming to be one of its first cases in the country, Indian 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 India’s popular social media agencies.
With the acquisition, clients and employees of Red Digital will be consolidated under the Gozoop brand, thus rapping up the latter’s Indian operations. Though there has been no word on financial details of the deal but a story at ET stated that it could be a Rs. 7 crore ($1. 17 million) deal, but Ahmed Aftab Naqvi, Co-founder and MD, Gozoop, denied the same by stating that the ET report is incorrect and the agency has not released any figures.
The acquisition by Gozoop, founded in 2010 by the trio of Ahmed Naqvi, Rohan Bhansali and Dushyant Bhatia, is going to play a pivotal role in the agencies global expansion as well as strengthening its base in India. At present Gozoop’s business consists of three verticals—services, products and web properties. Under Gozoop Services, the company provides social media marketing, online PR, search engine marketing and optimisation, media buying, web design & development and mobile applications.
Under products it offers two properties—Zozolo Social Loyalty and Zozolo Social Commerce. The Mumbai-based company has a clientele that include brands like Xpress Money, Interglobe, High Street Phoenix, Commercial Bank of Dubai, Tim Hortons, Cold Stone Creamery, Seacod and Mad Over Donuts.
With Red Digital’s rich client base mainly across the entertainment and technology industries, its strong presence in 5 key cities in India, and Gozoop’s international exposure and clientele, the combination will enhance Gozoop’s global presence and cost efficiencies.
Currently, 65% of Gozoop’s revenue is attributed to its international operations in UAE & 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 will now contribute close to 50% of revenues, an increase of 50% from earlier. The acquisition will also increase the employee strength of the company to about 100 members.
The deal is being looked upon as a win-win for all parties. According to Harsh Jain, Co-Founder of Red Digital, “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.”
For Ahmed Naqvi this deal gives an opportunity to his agency to access newer geographies across India. He further adds, “Red Digital’s world-class brands & top talent, together with Gozoop’s end-end digital service offerings & social products like Zozolo, will help move our collective clients and the industry forward.”
Along with this 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 $2mn to venture into international markets like USA, Australia & Qatar.