Mumbai : Global media buying and planning firm GroupM is in advanced talks to acquire Mumbai-based digital media and marketing startup Foxymoron for about Rs 180 crore ($30 million), as it seeks to establish a more dominant India position. The all-cash transaction is at an advanced stage of due diligence, with GroupM, which is a wholly-owned unit of WPP, the world’s largest advertising firm, looking to close the deal over the next few weeks, according to people with direct knowledge of the development.
If successful, this will be the latest buyout transaction in the nascent but fast-growing Indian digital, social media and marketing sector. In January, it was reported that global media giant JWT was also scouting for potential acquisitions. Founded in 2008 by Pratik Gupta, Paritosh Ajmera, Suveer Bajaj and Harshil Karia, Foxymoron has emerged as one of India’s leading digital media and marketing agencies, and counts companies such as L’Oreal, Marico and Castrol among its roster of clients.
The startup provides a range of services across the board, including end-to-end digital services, besides design, development and social media services. The potential transaction is part of GroupM’s strategy to establish an even stronger footprint in the country, where it already has a dominant presence.
In 2014, it was reported that WPP, its parent company, has targeted growth from digital and the world’s faster growing markets to as much 45% of total revenue within the next five years. It is yet not clear whether Foxymoron will continue to operate under its own brand name post the acquisition, or whether its employee strength, estimated at about 150, will be completely absorbed by GroupM.
India’s online advertising market is poised to exceed Rs 3,500 crore in revenue in 2015, according to a report jointly published by the Internet and Mobile Association of India (IAMAI) and IMRB International, which also states that spends on video ads will grow at a compounded annual rate of 56%, while contributing 12% to the overall market share of digital advertisements.
