Attracting investments and scaling up fast are the wish of many agencies and marketers, not everyone’s.
Agencies and companies want to get on the digital marketing bandwagon. Some are risk averse, while many are trying to raise funds.
It is interesting to see the funding environment in Pune evolve, and here is a lowdown on the same on occasion of the Angel Investing Master Class being organized by Mumbai Angels in Pune on 21st December. The Angel investing master class aims to grow angel investors in Pune.
Akash will be speaking on Pune startup eco system, how is it evolving, what kind of funding is being made available and which domains are attracting funding, along with who are the investors and stake holders involved.
Akash says that “Purely from a MarTech perspective not much action has been seen is Pune. But customer engagement space is seeing good action. More companies are coming up in that space.”
He also adds that “I haven’t seen large investments of startups coming from Pune in this space.
Digital marketing is still evolving and trying to find its foothold in the innovation aspect. Startups in the digital marketing space in Pune have an advantage. Many enterprises and brands are present in Pune, and the ad agencies and market agencies who are looking for acquisitions from Pune.”
Lot of agencies from Mumbai are global in nature, and they could be looking for potential partnerships or acqui-hires of companies or agencies in Pune.
Is fund raising important for AdTech or MarTech companies?
Rohit Bagad, Founder & CEO, Inuxu Digital Media Technologies says “world over many MarTech companies are pursuing angel investment. For starters, MarTech companies are fundamentally different from AdTech companies. Investing in Pune is different from what it is in Mumbai, and entirely different from what goes on in Silicon Valley.”
Secondly, if you look at Silicon valley, there are people who believe and support ideas in the early stage. An angel investor is very important for startups who want to grow. One of the biggest MarTech company in India is Oracle.
Once you get funded, then it is a function of investor’s and promoter’s plans as to where and how investment should happen. It could be in improving technology, talent and business areas or it could be in aggressive advertising.
For example, Vizury was earlier a retargeting firm but post investment they are positioning themselves as a growth marketing platform. MarTech companies require large technological investments and unlike AdTech companies, they are attracting better response from investors.
Pune based digital marketing agency have raised funds and here is what they had to say.
A few of those who spoke on the condition of anonymity pointed to the small world that angel investing is in Pune, especially in the AdTech or MarTech space. Being a service industry, we marketers face some of the commonly known challenges that come with the whole fund raising mission. The Mission Impossible, some said with a barely concealed mix of emotions.
On the other hand, there are the few who have raised funds and shared their observations with us. Rahul Jain of Innoserv Solutions says that either there M&As in the digital agency space or there are brands who want to grow in this space and are starting fresh divisions.
Investments on the bootstrapping front are very few or negligible. People who want to attract investments could look at being front runners in new technologies like VR or IoT, which are touted as the next step in digital advertising. Raising funds helps in the journey towards becoming vertical leaders. However, there is a reason why raising funds is not an option looked in to by many.
What are reasons for avoiding or not looking at fund raising in digital advertising space?
Growth becomes a mandatory imperative post funding, and growth in the marketing or MarTech space is a factor of – amongst other things – talent. Availability of talent is a big problem in this space and your growth is in direct correlation of the talent that associates with your brand.
If you are getting in to an engagement with investors then talent is one big bottleneck which you would want to figure out prior. Be it designers, strategists, account managers, you would find it hard to onboard the right talent with aligned motivation who will help you in the scaling up part.
There is so much more to angel investing, fund raising than what we have covered here. Looking forward to share with our readers further insights post the Angel Investing Master Class.’
Agenda, Tickets and Details of the Master Class are available here.