Campaign India Team
Jul 31, 2013

Digital agency Gozoop acquires Red Digital

Plans $ 2 mn investment, reveals intent to acquire digital agencies in India, USA, Australia and Qatar

Digital agency Gozoop acquires Red Digital

Gozoop, a Mumbai-headquartered  digital agency with presence in Dubai and Singapore, has announced its acquisition of Red Digital, an Indian social media agency. Following the acquisition, Red Digital’s clients and employees will be consolidated under Gozoop.

Following the deal, Gozoop will expand to Delhi, Bangalore, Chennai and Kolkata, from its current presence in Mumbai, Dubai and Singapore. The acquisition will increase the employee strength of the company to 100, up from 70 earlier (40 in India).

The acquisition is in line with Gozoop’s strategy to increase revenues from Indian operations, it said. Currently, 65 per cent of Gozoop’s revenue comes from its international operations. Gozoop aims to double revenue from India in the next financial year following the acquisition. With the acquisition, Gozoop's domestic operations will now contribute close to 50 per cent of revenues.

Bhavit Sheth, co-founder, Red Digital, will be ‘actively involved during the transition period’, according to the statement.

Gozoop also revealed plans to invest over $2 million over the next three years to expand to markets like the US, Australia and Qatar.

Ahmed Naqvi, managing director (India) and co-founder, Gozoop, said, “Gozoop has always aspired to be a market leading digital agency and this deal will exponentially accelerate our ability to realise that ambition by giving us access to newer geographies across India. Red Digital's world class brands and top talent, together with Gozoop's end-to-end digital service offerings and social products like Zozolo, will help move our collective clients and the industry forward. We expect further consolidation in our industry and look forward to acquiring digital agencies to fuel our growth in India as well as to enter international markets like USA, Australia and Qatar.”

Harsh Jain, co-founder, Red Digital, said, “Gozoop’s 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."

Source:
Campaign India

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