'Gozoop’s M&A strategy transformed capabilities, bottom lines'
The agency has achieved a 30% CAGR over the past three years through strategic partnerships and acquisitions
Homegrown digital-first integrated marketing agency Gozoop, is following the lead of global giants like WPP, Omnicom, and Dentsu by pursuing a strategy of mergers and acquisitions. These firms have expanded their service portfolios and strengthened their global presence by acquiring independent agencies with specialised capabilities in areas like digital marketing, media planning, and creative services. Gozoop aims to replicate this model to strengthen its own network and capabilities.
The partnership expansion that started almost a decade ago with acquisitions of social media agency Red Digital; iThink InfoTech, a technology company; 56 Blue Lights; Stratton Communications; HAT Media and many others have only accelerated in the last few years.
Over the last three years, Gozoop has experienced significant shifts, resulting in a CAGR of nearly 30% during this period.
"At the end of the day, it's all about increasing profitability," said Rohan Bhansali, Chairman and Co-founder of Gozoop.
“CAGR achieved after JVs with other agencies in the last 3 years, has been 30%. This year we will be in line with the growth rate but the more important point is that our bottom line will grow by more than 100% this year. This is a result of operationally efficiency through ‘revenue per headcount’ optimization and our hedgehog strategy to focus on our strengths and partner with companies in related domains through JVs and M&As. This strategy has completely transformed our bottom line,” added Bhansali.
Gozoop’s partnership with Hepta in 2019 allowed Gozoop to outsource its tech requirements, focusing more on its core creative and ORM functions. The collaboration helped streamline tech operations and improve overall efficiency. Then there was GZ Pure in January 2023, a media JV that significantly improved Gozoop’s media operations, increasing billing from Rs 8 crore to Rs 45 crore in its first year.
The JV also turned a loss-making media function into a profitable one, aiding the agency's bottom line.
The latest being Bhatia Labs that came on board as partners in January 2024. Focused on SEO, this acquisition is expected to boost Gozoop’s SEO capabilities.
The agency is in the final stages of negotiations with a public relations agency to be onboarded onto their roster.
According to Bhansali, their joint ventures have experienced significant revenue growth in the first year, typically ranging from 300% to 500%.
