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Leading e-commerce firm Infibeam on Monday announced the acquisition of digital marketing company ODigMa for $5 million (Rs 32 crore), primarily in stock and cash, which is five times the current turnover of the Bangalore-based company.
The Ahmedabad-headquartered Infibeam will fund this acquisition through internal accruals.
Vishal Mehta, CEO and Founder, told Business Line here the two companies entered into an agreement on Monday enabling Infibeam to acquire a 100 per cent stake and complete ownership.
This will further strengthen and expand the broad range of e-commerce and digital marketing service offerings by Infibeam to its existing and potential merchants and enterprises, said Sachin Oswal, Co-Founder, www.infibeam.com.
Advit Sahdev, CEO, ODigMa, and his 100-odd employees will continue in the new set-up as a separate, subsidiary company of Infibeam. ODigMa, founded in 2011, currently has a client base of 400 brands, including Myntra, MakeMyTrip, Airtel, MTS, Marks & Spencer, Aditya Birla Group, HiDesign and Philips. He said he will relocate to Ahmedabad soon.
A profitable ODigMa had a turnover of $1 million (Rs 6.2 crore) until the third quarter (December 2013) of the current financial year, he said.
In 2013-14, Infibeam’s turnover is expected to be about Rs 500 crore, Oswal said.
He said Infibeam is also likely to consider going public at an “opportune time” to fund its future expansion plans.
In 2008-9, Infibeam had acquired PicSquare, a personalised photo products firm.
ODigMa would provide strategy, digital marketing and technical services to companies across major retail and services sector to enhance their customer agreement and brand experiences that drives e-commerce performance in India. The acquisition will broaden Infibeam’s own service capabilities in the online space.
Mehta said Infibeam, through the ODigMa acquisition, would democratise digital marketing and communication services in India and offer an affordable, comprehensive suite of marketing, technology and analytic solutions to its customers and merchants on the Build-A-Bazaar SME platform, enterprises and individuals and potential SMEs.
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