Mogae Media to invest Rs 100 cr in digital startups
Sandeep Goyal, Chairman of Mogae Media, which provides mobile marketing services and helps businesses connect with the mobile-using consumer, has raised Rs 100 crore fund. The fund will be used for acquisition of digital startups that have built brands, but are now struggling to raise funds for re-engineering or re-launch.
Sandeep aims to make late-stage investments in the digital media and mobile innovation verticals with investment in service sector startups, especially in the F&B, logistics, e-commerce/m-commerce, and cab pick-up space (local mobility) with mobile-enabled platforms.
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“Analytics, mobile ad serving platforms, programmatic buying on the mobile, mobile fulfillment and mobile targeting are areas that Mogae Media is keenly focussed on. Any acquisition or investment in this space intrigues the interest of the company immediately,” says Sandeep Goyal.
He adds that he is separately looking at companies who have created a solid brand, but have burnt too much cash getting there. They now need an injection of both cash and rock solid experience for a good chance to survive.
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Outside of Mogae Media, he also plans to partner with some ultra HNI friends in these investments. An alumni of Harvard Business School, and former Country Head of one of the world’s largest telecom companies is expected to join hands in this initiative.
After selling his 26 percent stake in Dentsu India in 2011, reportedly for Rs 240 crore, Sandeep founded Mogae Media in 2012. Since then there is no stopping of the venture. The company claims to see revenue rise from Rs 11 crore in 2013-14 to Rs 75 crore in 2014-15. During fiscal year 2015-16, Sandeep had predicted to hit Rs 200 crore in revenue.
In 2014, Mogae Media raised Rs 100 crore from Renuka Ramnath-promoted Multiples PE.
During June 2015, Sandeep launched Tango Media, a wholly owned subsidiary of Mogae Media, to lead the way in 'performance advertising' on mobile. Its new B2B2C offering was to enable brands to connect their (TV) advertising with customers through a convenient/memorable 'call-to-action' both from feature or smartphones.
During August last year, it signed a memorandum of understanding with German startup Zeotap to float a 50:50 joint venture in India that will provide a platform for advertisers to buy media space on mobile platforms through real-time bidding, based on browsing history of individuals.
A few months ago, Mogae Media’s subsidiary Tango Media launched StarStar (**), a patented technology that enables customers to merely dial a name rather than dial a number. According to Sandeep, this mobile call-to-action tool would be a game changer in the way brands connect with their end consumers.
The company today has partnered with established brands like Kellogg’s India, Urban Clap, Star TV, Hero, SAB Miller, TATA Motors, Yes Bank, Axis Bank, Kansai Nerolac, Discovery Channel, DSP Black Rock, and Max Life Insurance.
