Ybrant Digital, the company offering digital marketing solutions, is planning for an IPO in order to raise INR 700 crores in order to expand to Chinese and Brazilian markets. Ybrant also plans to buy a company in in-gaming advertising and a US-centric affiliate network. To make these acquisitions, Ybrant plans to make funds available through a pre-IPO round wherein they shall negotiate with existing investors. The digital marketing company has already raised INR 259 crores for the acquisitions from private equity players and four hedge funds.
Through the in-gaming advertising company acquisition, Ybrant plans to bring gamers from all across the globe to one location where they can run advertisement. Such a gaming platform will definitely be a force to reckon with in the in-game advertising world.
Lycos acquisition benefits?
Recently, we reported that Ybrant bought Lycos for a cool $35 million. With the 20 billion ad impressions that Ybrant already had before they bought Lycos, they were bound to increase this staggering number by some margin. With this news of Ybrant planning for an IPO, one question that does come to one’s mind is whether the Lycos acquisition was purely a strategy to increase their market value. Apart from adding to it ad impressions, the Lycos buyout ensures a increase in the market value before the proposed IPO, which in-turn ensures the targeted INR 700 crores, if not bettering that mark.
This is not the first time that Ybrant have planned for an IPO. In September 2007, the company had filed a Draft Red herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). However, as the market was not as lucrative as it is now, the company decided to put those IPO plans on hold.
Do you agree on Ybrant buying Lycos for the purpose of increasing their value?
