Capital18, the & #BANNER1 & # venture capital and private equity arm of the Network18 Group, has invested an undisclosed amount in digital agency Webchutney. The investment has all been made in cash. Speaking to agencyfaqs!, Webchutney's founder and CEO Sidharth Rao said, "The investment will be utilised to expand our operations." He added that there would be no major change in the day-to-day operations and management of the agency.
Commenting on the investment, Sarbvir Singh, managing director at Capital18, says, "We see the digital ad agency business rapidly scaling up. The future for digital advertising is bright, but the costs and revenues of these agencies do not allow them to make the kind of investments they need to. We felt that Webchutney was the right kind of agency to back. Now, it's up to them to drive the business."
Responding to whether this investment would create a conflict with the media business of Network18, Singh said, "This is a financial investment. If we do end up competing for business, so be it!" The media group already has a traditional ad agency, The Cell.
Webchutney was founded in 1999 and has about 100 employees. The agency serves clients such as Airtel, Microsoft, Hewlett-Packard, HSBC, MakeMyTrip, Zapak and Bookmyshow.com.