News has broken that advertising and communications group, Dentsu India has acquired a majority stake in WebChutney, one of the leading digital agencies in the country. We had written earlier that a deal between Dentsu and Webchutney was in the offing but both the companies did not confirm anything. The news now is that Dentsu has a majority stake of 80% in the agency and will look at it being a wholly owned entity by 2017.
Afaqs has speculated that the deal is around Rs. 40-50 crores and has resulted in a 300% return for Capital 18, which invested in Webchutney previously. Dentsu has thus effectively bought out Capital18’s share in the company. With this Dentsu gets two of the most creative independent companies in the country under its belt, the first being independent mainline agency Taproot, in which they acquired a majority share last year.
Sidharth Rao, chief executive officer and co-founder, Webchutney said,
“We are thrilled to be working with such a strong global leadership and are ready to enter a new phase of our growth. I am also personally grateful to Sarbvir Singh (MD, Capital18) who has been my mentor for the last five years and his web team at Capital18 for ensuring that we shared a wonderful journey together.”
Rohit Ohri, executive chairman, Dentsu India Group, spoke about the development,
“Dentsu is the first global network that’s being built out in the post-digital era. We believe we’re building the network of the future. Our partnership with Webchutney is another step in that direction.”
Many international groups over the course of the last year have tried to consolidate their segment by getting in independent digital agencies into their mainline line-up which speaks volumes about how much digital is being banked on by these companies in order to deliver their marketing, advertising and communication services to brands and other clients.
Source | Afaqs