BENGALURU: Adtech company SVG Media has acquired Networkplay Media, the digital media unit of German firm Gruner + Jahr for Rs 92 crore(over $15 million), making SVG Media one of the largest independent mobile advertising networks by revenue in India.
SVG has platforms that can work on mobile, web and banners and is on track to earn revenue of Rs 210 crore this fiscal, according to a company executive who did not wish to be named “After consolidating our position in India with this deal, we hope to become the largest digital advertising platform in Asia,“ said Manish Vij, 36-year-old cofounder of SVG Media who claimed his company has a 7% market share in India.
The digital advertising spend in India is estimated to touch Rs 3,575 crore by March 2015, according to Digital Advertising in India Report.
The deal, SVG’s second since inception, will expand its outreach to over a 100 million users in India. As part of the deal, Haryana-based startup Seventynine, which was acquired by Gruner + Jahr in November 2012 will also move to SVG. Seventynine will add the video ad-serving capability to SVG’s portfolio.
In 2012, SVG bought out another ad network DGM India from AIM Listed Asia Digital Holdings.
And more consolidation in the space is on its way, said experts.
“The Indian digital market is going through a boom phase, with all aspects of digital media showing strong growth from e-commerce right to messaging services,“ said Neha Dharia, research analyst at Ovum, who was not able to validate the SVG’s claim of becoming the largest ad network in India.
“As with any boom period, we will see the growth of a multitude of advertising networks (innovating and disrupting established ad tech companies), after which we can expect a wave of consolidation to occur about a year or two down the line.“ Founded in 2007 by Harish Bahl and Manish Vij, the ad tech firm has access to markets in South East Asia, Australia, and Middle East. So far, SVG Media has raised $2 million from Silicon Valley-based VC firm, Xplorer Capital.
And Gruner + Jahr’s exit from the digital media business in India seems to be SVG’s gain.
“Those at the headquarters have decided to exit the digital media play to concentrate on other markets. SVG proved to be a good option,“ said Alexandra Harrop, director of Business Development Asia at Gruner + Jahr.
( Originally published on Dec 03, 2014 )