Network18 Media & Investments Limited’s venture capital arm, Capital18 has entered into an agreement with Dentsu India Group to divest its stake in digital agency Webchutney. An official statement Dentsu Media & Holdings India Pvt. Ltd. stated that it will acquire 80% stake in Webchutney and the company will become a wholly owned subsidiary of DMHI by 2017.
Capital18 was a majority shareholder of Webchutney, and has generated return of over 300% by the deal. This is shown as a step to create value for the shareholders and also to facilitate the growth of these businesses to the next level.
Previously Dentsu has also acquired stakes in another creative agency Taproot in August 2012. Now with the acquisition of Webchutney, Dentsu aims to use its strengths in digital strategic planning and innovative ideas to provide digital creative solutions to serve its clients.
Launched in 1999, Webchutney is a digital creative agency which has won more than 70 national and international awards.
Dentsu India group is a media & digital oriented advertising and communications agency which operates under the umbrella of Dentsu Aegis Network Ltd., the Dentsu Group’s global operating unit headquartered in London.
The parent advertizing company Dentsu Inc. is based out of Japan.