Thursday, 8 January 2015

SVG Media eyes $40M in PE funding to buy more digital media cos; charts IPO by FY17

Smile Vun Group (SVG) Media, a joint venture between Manish Vij’s Vun Network and Harish Bahl’s Smile Group, is in talks for a large round of private equity funding and is targeting to go public in India in 2016-17, the duo told VCCircle/
“We are already in talks with a few PE investors for growth capital, but nothing has been finalised yet. The funds will be used to expand our operations to more markets in Asia and the Middle East,” according to Vij.
“We are also looking to make more acquisitions or investment in the digital media space, and are already in talks with a company in India,” he added.
Manish Vij
Vij said SVG is currently in talks to raise $40 million in funding to expand to new geographies and to acquire more companies.
SVG Media, which recently snapped up mobile ad network SeventyNine and digital agency NetworkPlay from Gruner + Jahr (the publishing division of European media conglomerate Bertelsmann AG), is looking to float an initial public offer (IPO) in India in a couple of years.
“We want to run the business for long term, but at the same time we want to create liquidity for our shareholders by way of listing the shares in Indian stock market,” said Bahl.
Harish Bahl
According to him, the firm is looking to do an IPO in the country to attract Indian investors. “Our business has the ability to go public pretty fast, given that the market is ripe and growing fast. Our personal ambition is that we would like to create value for Indian shareholders in the India market,” added Bahl.
Started in 2006, SVG Media is a digital media network with a presence in India, Southeast Asia and the Middle East. The company is serving business in over seven countries and houses performance, mobile, and data targeting businesses such as Tyroo, PrecisionMatch and DGM.
Its clientele in the country includes companies like Flipkart, Snapdeal, Amazon, PayTM, MobiKwik, Myntra, Jabong, Citibank, and Standard Chartered Bank.
The firm had earlier raised funding from US-based VC fund Xplorer Capital, which had also bought out Yahoo’s stake in the firm in 2011.

Predictions: 2015 will see a spurt in the usage of digital media solutions

Digital media has metamorphosed the whole advertisement industry, creating constant ripples in the market. Advertisers have started employing digital media to fulfill all their advertising needs as this has emerged as the best way to reach their target audience. Smart phone usage has increased manifold and hence, it has become the ideal option for advertisers to use them as a source to promote the products and services of companies.   With consumers becoming more app-driven and gadget-savvy, brands have begun to advertise themselves on the mobile platform for the ease and convenience of their patrons. The year 2014 witnessed phenomenal growth in the digital media segment and 2015 will also observe the same trend owing to the escalating use of digital media platforms like smartphones and related applications by consumers.
As far as 2014 goes, the usage of mobile applications has increased tremendously hence companies invested hugely in developing innovative and user-friendly apps. Usage and sharing of digital content inflated substantially, leading to the development of an industry that specifically focuses on production and distribution of such content.   With digital advertising videos gaining popularity, companies started allocating a considerable budget for the same but limited it to a single player.  On the other hand, the conventional digital display media like banners saw a decline in interest and video, native (performance) and content platforms witnessed considerable growth, influencing a major chunk of the market.
The year 2015 is sure to observe programmatic buying that people have been talking about. This will take over most of the display spends. Therefore, technology driven agency trading desks and consolidated programmatic buying by clients will experience an upsurge. In the digital ecosystem, programmatic buying simply refers to a broad spectrum of technologies that assist the buying, placement and optimisation of advertising. People usually get confused with this technical jargon. In layman’s terms, it means buying of any advertisement that gets processed through machines.
Besides programmatic buying, 2015 will see a spurt in the usage of digital media solutions by companies. Mobile advertising will achieve a significant breakthrough, influencing and transforming the sphere of advertising to an extent where advertisements on smart phones will surpass any other kind of promotion on digital media. The umpteen advantages offered by mobile advertising like increased consumer engagement with the company, increasing traffic to web pages and reaching customers on the go make it a lucrative mode of advertising for marketers.
Digital media advertising is here to stay as it helps advertisers attract the right audience. From elevating brand visibility to delivering the digital ads to the target audience, digital media embodies various online advertisements that are devised in conjunction with the needs and demands of the market.
The emergence of digital media has brought waves in the advertising sphere, resulting in companies embracing online and digital media solutions for all their marketing needs. In accordance with an observation made recently, the Indian telecom network is growing marvelously due to its high population and development potential. This proves that mobile advertising which is a form of digital advertising has a bright future in the country.