TTNV announces consolidation of digital services business2 min read . Updated: 18 May 2015, 09:39 PM IST
The move comes on the back of the company looking to capture synergies across the fields of technology, analytics, creative and content
Mumbai: Singapore-based Internet products and services company TO THE NEW Ventures announced on Monday that it was consolidating four of its existing business units—Ignitee Digital, a Mumbai-based digital marketing services firm; IntelliGrape Software, a Delhi-based web and mobile app developer; Tangerine Digital, a content management firm; and Techsailor, a digital marketing agency in Singapore and China—to form a specialised end-to-end digital services company, under the name TO THE NEW Digital.
According to Deepak Mittal, chief executive officer, TO THE NEW Digital, the move comes on the back of the company looking to capture synergies across the fields of technology, analytics, creative and content, and to be able to offer integrated solutions to its clients. “The idea was to become an end-to-end digital services provider and provide holistic solutions to our clients spread across some 30 countries, including the US, parts of Europe and South East Asia," he said, referring to the consolidation.
The individual brand names will cease to exist. The consolidation will also help give them a competitive edge and a larger playing field in an already cluttered and fragmented market, the company said. Currently, the firm has around 300 clients spread across these markets. Some of the clients include Time Warner Cable, packaged goods firm Procter & Gamble, lube manufacturer Castrol, aircraft manufacturer Airbus, Citibank and luggage manufacturer Samsonite.
The company isn’t ruling out acquisitions. Astro Overseas Ltd, a Malaysia-based firm, is the lead investor in TO THE NEW Ventures, which is the parent company of fashion and lifestyle e-commerce brand, American Swan; #fame, a talent management platform; Blogmint, a platform that connects bloggers with brands; and ThoughtBuzz, a social media analytics brand.
Mittal said the company could look at acquiring small creative boutiques or niche, specialised agencies, with a valuation of $10 million or thereabouts.
TO THE NEW Digital also plans to expand its global footprint from its current eight offices in six countries to Europe and the US. The India business contributes over 25% to overall revenues, with a big focus on the media and entertainment sector. Mittal expects that from the current 600-odd employees, the number will rise to over 2,000 employees over the next three years.
According to Mittal, the digital services space in India is growing at a rate of 25%. He believes that with digital spends in India touching $1 billion, the opportunities are immense.
According to a recent report by media investment firm GroupM, digital ad spends in India will grow at 37% this year.