Delhi-based digital marketing agency Pensa Media is looking to raise up to $4 million in VC funding for its expansion in India, founder of the company told Techcircle.in.
Pensa Media, founded in 2007, caters to around 12,000 small and medium businesses and is present in 17 cities in India. The firm provides services like online advertising, search engine optimisation, pay per click, social media visibility, online reputation management, website fashioning and web application tailoring. Pensa Media a Google AdWords Premier SME Partner and authorized agency of Google Adwords, which is an advertising initiative by Google for SMBs.
Neeraj Khanna, founder of Pensa Media, said, "Our USP as a digital marketing agency is that we only cater to SMBs and we plan to have 25,000 SMBs as our clients by March 2015. We also plan to invest in technology platforms to cater to our huge customer base. Hence, we are seeking an investment from VC firms."
The company is already working on launching a technology platform for SMBs.
Khanna mentioned that he will be increasing the sales force team's strength along with employing more people in technology team. At present, the sales team is 200 strong and the technology team includes 10 employees. The total strength of the company is 700 people and it has a top-line run rate of $8 million.
"Till now the company has been funded by internal accruals, friends and family," said Khanna.
He added that complexities in local online marketing will continue to grow, but as local marketing automation systems emerge this complexity will become manageable and simplified for SMBs. Continued growth in consumer and SMB mobile usage will force companies to accelerate integration of mobile workflow into existing products.
The digital space has seen significant consolidation in the past. In January last year, TBWA Worldwide Inc, a New York-based advertising agency, acquired New Delhi-based digital agency Magnon Solutions Pvt. Ltd for an undisclosed amount.
In May last year, Capital18, venture capital arm of Network18, entered into an agreement with Dentsu India Group to divest its stake in the digital agency Webchutney Studio Pvt Ltd for an undisclosed amount. Capital18 generated a return of over 300 per cent on its investment, made way back in 2007.
(Edited by Joby Puthuparampil Johnson)